Thomas Jordan, the Chair of the Swiss National Bank (SNB), believes a retail central bank digital currency (CBDC) is too risky. However, the SNB is actively piloting a wholesale CBDC as part of Project Helvetia III, and he gave a progress update. He also shared the outstanding questions in order for the pilot to enter production.
On the retail CBDC front, he started from the usual advanced economy perspective – there’s no need because payment requirements are already satisfied. However, he was more adamant than other central bankers.
“Retail CBDC could fundamentally alter the current monetary system and the role of central banks and commercial banks, with far-reaching consequences for the financial system,” said Dr Jordan. “From a Swiss perspective, the risks of retail CBDC currently outweigh its potential benefits.”
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