Reportedly, Switzerland’s central bank is functioning with the nation’s stock exchange to analyze the potential use of digital currencies for trading. In the latest statement, SIX Group—Swiss stock exchange operator—stated that it was collaborating with the SNB (Swiss National Bank) on a piece of evidence to “find out how digital central bank money can be utilized in the settlement of tokenized possessions among market participants.” Such a scaffold can involve linking the Swiss system for clearing payments to SIX’s planned digital exchange, or the disclosure of an electronic version of the Swiss currency from the SNB. The research would be conducted at a facility set up by the SNB in collaboration with the BIS (Bank for International Settlements), which is an umbrella group for the largest central banks globally.
In fact, SIX has been functioning on a digital exchange that will use blockchain—the fundamental technology behind cryptocurrencies such as Bitcoin—to issue and clear up trades in digital assets. The main aim of the group is the “tokenization” of conventional belongings such as bonds and shares—fundamentally producing digital versions of such safeguards. This is a move the company alleges will decrease the time it needs to finish a trade, from several days to less than a second. Recently, Thomas Zeeb—Chief of Securities and Exchanges at SIX—said to CNBC that it was seeing enhanced interest in the tokenization of niche investments such as art gallery collections.
On a related note, SNB plans to research CBDCs (central bank digital currencies) at innovative BIS Innovation Hub Centre. As per a news release, the BIS’s first three advance hubs would be set up in Hong Kong, Switzerland, and Singapore. The Swiss center will primarily aim at two research missions such as incorporation of CBDCs in a distributed ledger technology communications and study of the augmenting needs for monitoring fast-pacing electronic markets by central banks.
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