February 1, 2023

Switzerland refused to issue digital franc

Switzerland refused to issue digital franc

The Swiss government abandoned plans to release a digital version of the franc because of the high risk of destabilizing the financial system.

The Federal Council concluded that inCurrently, the use of the digital currency of the central bank will not bring the expected benefits to the financial system, and will not be able to sufficiently increase the effectiveness of the country's monetary policy. At the same time, according to authorities, the digital franc will create new risks, primarily for financial stability.

Swiss government considers inappropriate continue research and work in thisdirection. The freezing of the project is partly due to the fact that the digital asset being developed was intended exclusively for participants in the financial market, and not for the general public.

Perhaps the government was prompted by the results of joint research with the Bank for International Settlements to such a decision.