BIS to Launch A ‘Proof of Concept' CBDC With Swiss National Bank By End of the Year

Central Bank Digital Currencies (CBDC) are becoming very popular amongst countries globally. It seems every day there is a new country popping up to release news that they are either researching or denouncing the need for a CBDC. The latest development shows that by the end of 2020, the Swiss National Bank (SNB) and Bank for International Settlements (BIS) will run its own pilot for a digital currency backed by the central bank.

The sentiments have changed towards the need to research a CBDC in the last year. Benoit Coeure, an executive at BIS, had previously issued cautions, telling users to avoid virtual currencies but his attitude has changed. Sunday, the BIS revealed a plan to test a ‘proof-of-concept' CBDC of their own by the end of the year.

As per Coeure, the proof-of-concept will allow them to experiment with retail CBDC. Furthermore, it will help them to discover connections in the current payment system and oversee its compliance.

BIS also intends to collaborate with more central banks worldwide to test the cross-border efficiency of virtual currencies; Hong Kong Monetary Authority and Bank of Thailand are top of the list, said Ceoure.

The SNB and BIS partnered back in 2019, to learn more about blockchain-based tokens. At the moment, SNB says, “This new form of digital central bank money would be aimed at facilitating the settlement of tokenized assets between financial institutions.”

For the sake of effective banking, BIS and seven central banks published a comprehensive report to express their views that how a digital currency should be designed. They impart that CBDC would function with interoperability to coexist with and to complement the forms of money. As per the authorities, by launching CBDC, the central bank mustn’t compromise on financial stability.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Hank Klinger
Hank Klinger
Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today