The Swiss National Bank, the Banque de France, and the Bank for International Settlements (BIS) Innovation Hub announced on Thursday an experiment into using wholesale central bank digital currencies (CBDC) for cross-border settlement.
According to their joint statement, the test will involve the exchange of assets against a euro wholesale CBDC through a delivery vs payment system, and a Swiss franc wholesale CBDC through a payment vs payment settlement mechanism. The transactions will be respectively handled through the French and Swiss central banks. However, the banks were careful to point out that the experiment didn't mean they plan to issue wholesale CBDCs soon.
Andréa M. Maechler, Member of the Governing Board of the Swiss National Bank, noted that the central bank believes it is essential "to stay on top of technological developments," while the French central bank deputy governor, Sylvie Goulard, stated that the bank is "convinced of the potential benefits of wholesale central bank digital currency to provide maximum security and efficiency in financial transactions."
