In a recent report published by the Swiss Federal council, the council reported that a “Universally accessible [retail] central bank digital currency would bring no additional benefits for Switzerland at present”.

However, a Swiss digital currency for wholesale use that is “restricted to financial market players [only]” seems to be “a more promising strategy,” per the report.

In the age of digital transformation where consumers use less cash, digital currency could provide better access to payment and financial services for the general public. However, the Federal council sees issuance may arise risk to existing monetary policy and financial stability.

On the other hand, a “wholesale token” could help to enhance efficiency in the trading, settlement, and management of securities.

The wholesale digital currency will be developed using distributed ledger technology, in partnership with the Bank for International Settlements and SIX Digital Exchange. Currently, the group is in the process of developing a proof of concept, as announced in October.

The Japanese central bank also released its research report on central bank digital currency. Their findings match with the Swiss Federal council report. They too may not launch a general public use digital currency but see some benefits of a wholesale digital currency.

So far only a few countries, such as China and Sweden, are planning to issue digital currencies in the short to medium term. France is also launching an experiment with central bank digital currency available only to financial institutions.

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