The Swiss National Bank (SNB) has decided to extend the digital franc pilot program for an additional two years, showcasing Switzerland’s commitment to exploring the potential of central bank digital currencies (CBDCs). The performance, security, and scalability of the digital franc will undergo further evaluation in real-world scenarios to assess its implications and impact.
Antoine Martin, a member of the SNB’s Governing Board, praised the achievements of the pilot program since its launch in December 2022, emphasizing its role in advancing knowledge of CBDC technology. With an increased number of financial institutions participating in the extended test, the wholesale CBDC will be able to facilitate a wider range of financial transactions, aligning with the global trend of digital innovation in finance.
The SNB aims to gather more detailed information on the usability and functionality of the digital franc through the expanded pilot program, potentially leading to increased acceptance and new developments in digital financial instruments. Meanwhile, the Swiss Financial Market Supervisory Authority (FINMA) recently ordered the closure of FlowBank due to bankruptcy, citing insufficient minimum capital and high debt levels. FlowBank, an online bank involved in the cryptocurrency industry, was swiftly shut down by FINMA in response to its financial challenges.
In other crypto news, Ripple (XRP) continues to face challenges in recovering its price despite consistent trading volume and optimistic sentiment in the market. The cryptocurrency market remains dynamic and unpredictable, with various factors influencing the performance of digital assets like XRP.