Andréa Maechler, an active member of the governing board of Swiss National Bank (SNB) recently expressed her and other members thoughts on issuance of central bank digital currency (CBDC).
Maechler stated that the risks associated with central bank-issued digital currency outweigh the benefits, and allowing it to circulate for general public use could jeopardise Switzerland’s financial inclusion. She also dismissed the idea that the government absolutely has no interest in CBDC.
She said:
“This does not mean the SNB is not interested in CBDC, but our focus is to look at the role that wholesale CBDCs could play.”
Maechler’s comments come after the Swiss National Bank (SNB) announced the integration of a wholesale CBDC into the banking systems of at least five Swiss financial institutions. Surprisingly, earlier Maechler was enthusiastic about the CBDC’s implementation as she went on to say that technical advancements like the CBDC can assist countries maintain financial and monetary stability.
In Q4 2021, the SNB approached commercial banks such as Credit Suisse, Citi, Goldman Sachs, UBS, and Hypothekarbank Lenzburg to integrate the wholesale CBDC into all of their existing systems.
Maechler and her colleagues’ recent comments indicate that the time to launch CBDC is not yet here.
