The Swiss National Bank (SNB) will pilot a wholesale CBDC on the Swiss SIX digital exchange. It was announced by the chairman of the SNB at a conference on Monday that the central bank will pilot a wholesale central bank digital currency (CBDC). Chairman Thomas Jordan, quoted by Reuters, said of the pilot: "This is not just an experiment, it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants," On the subject of retail CBDCs Jordan was more circumspect. He admitted that they implied a risk to the financial system and that their use was “more difficult to control”. "We do not exclude that we will never introduce retail [CBDCs] but nevertheless we are a little bit prudent at the moment," Opinion The chairman of the SNB may say that he is being “a little bit prudent” but behind the scenes, as well as openly, many countries’ central banks are racing to complete their CBDCs in what they would probably perceive as the only way to keep the fiat monetary system going. The Bank of International Settlements (BIS), which is considered the central bank of all the world’s central banks, has urged all countries to speed up their development of CBDCs, stating its concerns over crypto and stablecoins. As fiat currencies become more worthless at an ever-increasing rate, it is likely to be far more difficult for governments and central banks to maintain the narrative that it is right and proper for citizens to keep cash in the bank. CBDC in the UK In the UK, inflation is higher and more persistent than in most other European countries, and with mortgage owners already screaming with the pain of interest rates that have tripled in the last two years, things are going to get a lot worse before they get better. The UK does appear to be taking consumer concerns into account with its own potential CBDC rollout. Privacy is being dealt with by the integration of zero-knowledge proof technology. However, that is not to say that this particular element might be withdrawn once CBDCs are fully implemented. No matter how they may be dressed up, CBDCs will only ever be another manifestation of fiat currency. Every single fiat currency in the history of the world has failed and has gone to zero. Bitcoin is outside of this system, is sound money with a fixed supply and cannot be manipulated or confiscated by any government or agency. It is incumbent on every citizen to educate themselves on this asset. Their future may depend on it. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
