Swiss National Bank Director: Central Banks are Losing Interest in CBDCs

Swiss National Bank Director: Central Banks are Losing Interest in CBDCs

One of the board directors at the Swiss National Bank, Thomas Moser, believes that the central banks are losing their interest in issuing a CBDC (Central Bank Digital Currency), Business Insider reports on Saturday, June 23.

He told Business Insider at the Zug Crypto Valley Conference organized this week that although the central banks were initially interested in issuing a CBDC or a national digital currency, the enthusiasm is no more the same because of the “implications it would have for financial stability”. He explained:

 “The whole technical issue, which excited everyone, really takes second place to this conceptual policy issue. The mood now is: everyone is monitoring it, some are experimenting with it, heavily, but I think everyone is waiting for someone else to do it first so we can.”

Moser also considers the technology underpinning the cryptocurrencies, blockchain, as too “primitive” for the country to issue its own CBDC “e-Franc”. He added:

“It’s kind of cumbersome to have all your money, all your savings in bank notes. It’s much easier if you can just switch it or have an account with the Swiss national bank. Then it becomes very volatile — in good times everyone has their money with the banks to earn interest, in the bad times, everyone has it on their devices. There are the things we need to think about how we would handle.

Furthermore, Moser believes that CBDCs could possibly compete with banks, making the issuance as something that would have to be carefully thought through. He added that the Swiss National Bank is currently neutral towards digital currencies.

“We are not worried, we don’t mind.”

Earlier this month, at the Money 20/20 Conference, Moser noted that as long as central banks are doing their job well, there’s no need for them to disappear.

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