Polygon (matic) 
Swiss National Bank Chair Thomas Jordan believes that public central bank digital currency (CBDC) may not be necessary at the moment, suggesting that interbank trials should be the focus. According to Reuters, risks associated with the technology currently outweigh the potential benefits, as stated by the head of the Swiss National Bank (SNB).
During an event in Zurich, Jordan highlighted the availability of efficient payment solutions in the private sector for consumers and businesses. He mentioned that a retail CBDC could have a significant impact on the existing monetary system and the roles of central and commercial banks.
The SNB has conducted various trials using wholesale CBDC to facilitate transactions between commercial banks like UBS and Zuercher Kantonal Bank. This aims to expedite transactions and reduce costs.
However, there are still unresolved questions due to the early stage of the technology. Jordan emphasized the importance of addressing issues such as holding Swiss franc digital central bank funds overnight, methods of remuneration, and determining eligible financial institutions.
Similar sentiments have been expressed by other financial regulators, such as Sweden’s central bank, Riksbank, which issued a research note in mid-March cautioning about the risks associated with CBDCs. They highlighted the importance of synchronizing offline transactions with online balances to mitigate liquidity risks.
It is essential for central banks and financial institutions to carefully consider the implications and challenges of implementing CBDCs before moving forward with any plans.
