Digital money and electronic markets: SNB / BIS agreement

The Swiss National Bank (SNB) and the Bank for International Settlements (BIS) today signed an operational agreement for the BIS Innovation Center in Switzerland. One of the first three in the world.

The Center will identify and develop in-depth knowledge of critical technology trends affecting central banks; develop public goods in the technological space to improve the functioning of the global financial system; and serve as a focal point for a network of central bank experts in innovation. As a first step, hubs will be established in Switzerland, the Hong Kong Special Administrative Region and Singapore.

As a first step, the Swiss Center will carry out research on two projects. The first of these studies will focus on the integration of a central bank digital currency into a distributed registry technology infrastructure. This new form of digital currency would aim to facilitate the settlement of symbolic assets between financial institutions. Tokens would be digital assets that can be transferred from one party to another. The project will be carried out as part of a collaboration between the SNB and SIX Group in the form of a proof of concept.

The second project will focus on increasing the requirements for central banks to effectively monitor and monitor rapidly evolving electronic markets. These requirements include the increased automation and fragmentation of financial markets, but also the increased use of new technologies.

Thomas J. Jordan, President of the SNB's General Directorate, said: "For some time, the SNB has been closely monitoring the digitization of the financial sector and technological innovations in areas within its mandate. Thanks to the collaboration with the BRI Innovation Hub in Switzerland, the SNB can continue to develop its skills in the field of financial markets and their infrastructures. We look forward to strengthening our collaboration with the BIS and other central banks in this area. "

Agustín Carstens, Managing Director of the BIS, said: "We are very proud that one of the first three Hub Centers is in Switzerland, where BIS has been headquartered for almost 90 years. Switzerland is a hotbed of innovation. This adds to its global competitiveness, well-established financial ecosystem and strong academic institutions specializing in technology. "

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