An active member of the governing board for the Swiss National Bank (SNB) Andréa Maechler, has recently disclosed the thoughts of most of her colleagues at the central bank, especially regarding the issuance of the country’s CBDC — the digital franc.
According to Maechler, the risks attached to central bank-issued digital currency outweighs its benefits, and having it in circulation for general public use might pose a threat to financial inclusion in Switzerland.
Meanwhile, Maechler was quick to dismiss the thoughts that the SNB might be absolutely uninterested in the idea of a 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”.
In other words, the central bank must sit back to properly analyze the privacy concerns as well as the possibility of using CBDCs for illegal transactions.
Governing Board Member of SNB Makes U-turn on CBDC
Meanwhile, Maechler’s statement follows after the SNB announced the integration of a wholesale CBDC into the banking systems of no less than five financial institutions in Switzerland.
Interestingly, Maechler at that time was in full support of the CBDC rollout. She even mentioned how technological changes such as the CBDC, can help nations to ensure financial and monetary stability.
And finally, in Q4 2021, the SNB tapped commercial banks like Credit Suisse, Citi, Goldman Sachs, UBS, and Hypothekarbank Lenzburg, integrating the wholesale CBDC into each and every one of their existing systems.
However, despite her earlier supportive stance, Maechler’s most recent comment alongside that of many of her colleagues in the central bank’s governing board may now confirm that it’s not time to launch a CBDC just yet.
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