Bank for international settlements successfully tested wholesale CBDC

The Bank for international settlements (BIS), with the Bank of Switzerland’s participation and the country’s largest stock exchange, SIX Swiss Exchange, confirmed the possibility of using national digital currencies (CBDC) for settlements on tokenized assets during tests.

As part of the proof of concept, the Helvetia project participants studied the legal and technical feasibility of transferring digital assets. They compared the release of wholesale CBDC based on the DLT platform and its integration with the existing wholesale payment system.

Retail CBDC or their universal counterparts, which provide for other use cases and the release of which may be associated with various political consequences, were not subject to concept checks.

The tests were conducted based on the BIS innovation hub. The Bank of Switzerland stressed that they are not a signal of readiness to issue a wholesale CBDC or settle transactions on the SDX trading platform of the six Group stock exchange in the Swiss interbank clearing system.

The results showed the advantages of wholesale CBDC and created conditions for further experiments. Their goal will be to assess the impact of issuing digital currencies on the financial system’s future.

“If wholesale CBDC is to realize their potential as a new means of payment, their structure and implications deserve careful study and consideration. Given the speed of digital transformation, Central banks must learn to make informed policy decisions quickly,” Benoit Coeur, head of the BIS innovation hub.

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