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The Swiss National Bank (SNB) won't hurry with its implementation of a central bank digital currency as the regulator sees no "no compelling advantage" of this type of currency, Reuters reports, citing governing board member Andrea Maechler.
Maechler said that the central bank had taken "quite a strong position" regarding the CBDC, pointing out risks, associated with digital Swiss franc.
"[Should customers become] worried or mad with a particular bank, you could transfer the money overnight to the SNB. This would add a lot of risk and volatility to the system which is ultimately not needed," Maechler said.
Last summer, SNB's Chief Economist, Carlos Lenz, said that decentralization is not what is needed for the national currency, which depends on full control by the state.
Lenz also added there is no risk that the Swiss franc would be supplanted by other currencies if Switzerland remains on the sidelines in the development of digital currencies. The SNB Chief Economist noted there are many technological possibilities for the digital franc. However, blockchain is very inefficient, Lenz added.
