SNB The Swiss National Bank (SNB) and Bank for International Settlements (BIS) have entered into an Operational Agreement on the Switzerland-based BIS Innovation Hub Centre, wherein the Hub will aim to develop insights on central banking technologies, develop public goods in the technology space for improving the functioning of the global financial system, etc. The projects have been developed as a result of a collaboration between SNB and SIX Group as a proof of concept.

Thomas J. Jordan, Chairman of the Governing Board of the SNB, said “The SNB has for some time been closely following the digitalization of the financial sector and technological innovations in the areas covered by its mandate. Through the cooperation at the BIS Innovation Hub Centre in Switzerland, the SNB will be able to further expand its expertise in the area of financial markets and their infrastructures. We look forward to bolstering our collaboration with the BIS and other central banks in this space.”

According to SIX, the SIX Digital Exchange (SDX) will be providing its platform for the exploring possibilities post the integration of digital central bank money into distributed ledger technology (DLT) platforms, which forms the first of the two projects. It is expected to assess the potential of DLT-based exchange of tokenized assets and digital central bank money in the reduction of counterparty risk. The second project aims to address the requirements placed on central banks for tracking and monitoring electronic markets.

Thomas Zeeb, Head Securities & Exchanges, SIX commented, “With the SIX Digital Exchange, we are following this path with a number of partners from the Swiss financial center. We are delighted to have the Swiss National Bank and the Bank for International Settlements at our side. Our proof of concept on the subject of digital central bank money for financial market participants on DLT platforms will not only provide technological insights but will also send an important signal to all market participants to take steps to explore DLT technology and digital assets.”

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by Megha Bhattacharya
Market Analyst at IBS Intelligence
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