The Swiss National Bank (SNB) continues to advance its digital franc pilot, now extending it by at least two more years.

The Swiss National Bank has decided to prolong its pilot program for issuing a wholesale central bank digital currency (CBDC) until at least 2026. Initially set to end on June 30, the pilot is now expected to include more financial institutions over time, according to SNB governing board member Antoine Martin. He mentioned that wholesale CBDC “can be made available for a wider range of financial transactions.” So far, the pilot involves six commercial banks, including UBS Group AG and Commerzbank AG, working in collaboration with Swiss stock exchange provider SIX.

The future success of the pilot project will largely depend on whether new financial market participants join, whether the volume of transactions increases, and whether additional financial market transactions are settled on this platform.

— Antoine Martin

Martin emphasized that the decision to extend the pilot does not “constitute a commitment on the part of the SNB to introduce wholesale CBDC or digital SNB Bills on a permanent basis.”

During the trial, the SNB issued money on a blockchain, allowing financial institutions to use the tokenized asset for transactions with the central bank. Unlike retail-focused CBDC pilots, the digital franc is limited to institutional transactions only.

The digital franc has already shown practical applications, settling at least five bond issuances on SIX’s digital exchange in Zurich, including a significant $226 million settlement for a World Bank bond earlier this month.

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