Swiss Bankers Association Publishes Discussion Paper on Digital Currencies
30.06.2021
Programmable digital currency - and especially central bank digital currency (CBDC) - offers potentially considerable added social and economic value. Using digital currency is convenient, fast, and cost-effective, and it opens up new opportunities for the economy.
A new Swiss Bankers Association discussion paper traces the international development in the field of digital currency, presents the opportunities and challenges of different forms for the Swiss banking industry, and asks critical questions on the correct positioning of relevant means of adjustment.
Depending on the form, however, modern means of payment could challenge national currency regimes and the monetary sovereignty of states and jeopardize financial stability. Banks could be reduced to the role of mere informers or suppressed. For this reason, central banks, banks, and technology companies around the world are working on design issues involving digital currency forms and the payment infrastructure.
Framework conditions in Switzerland
Due to the large number of challenges facing strategic economic and national policy, authorities and the financial sector in Switzerland need to ensure optimum framework conditions in the field of currency. An informed discourse on how digital currencies are designed and employed and what consequences this will have for the economy and society is therefore indispensable. The Swiss Bankers Association discussion paper has the goal of contributing from a banking perspective toward an informed discussion and toward the shaping of public opinion.