Switzerland Has Completed Its Testing With The Digital Franc.

Switzerland has finished the required round of its digital state currency testing. The regulator has not decided whether to issue a central bank digital money. The country’s major banks took part in the testing.

The Swiss National Bank has finished testing of the digital franc’s circulation in the financial system. They collaborated with the country’s major banks to complete the task.

The Swiss National Bank, according to Bloomberg, has finished the second round of testing the digital franc.

During a three-day test in December, five commercial banks integrated a wholesale edition of the digital Franc into their established business infrastructure. These were UBS, Citigroup, Credit Suisse, Goldman Sachs, and Hypothekarbank Lenzburg.

The experiment was known as “Project Helvetica.” Its goal is to discover the practical complexity, legal concerns, and political ramifications of creating a central bank digital money (CBDC).

It is unclear whether the Swiss National Bank will conduct a third phase of testing. It’s also uncertain if Switzerland will issue a CBDC based on the findings of the second round of testing the digital franc.

Thomas Moser is a member of the Swiss National Bank’s Board of Governors. In March, he stated that Switzerland will not hurry to adopt a digital currency. He said that the digital version of money is significantly inferior to cash in terms of anonymity when making payments.

Moser also stated that bitcoin was first a fascinating notion and concept. However, as the cryptocurrency matured, it strayed from its initial objective.

“Bitcoin was supposed to create a new financial system without intermediaries and central counterparties.”

However, as Moser points out, it became clear that many “do not want to be their own bank at all and are perfectly content to use the services of intermediaries and central counterparties.”

Switzerland is not a member of the EU, but it is a member of the single market. Most Swiss companies accept both the euro and the Swiss franc. As a result, it will be intriguing to see how the digital franc interacts with other fiat currencies.

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