Swiss Banks Collaborate To Explore Digital Swiss Franc

According to Odaily, major Swiss banks including PostFinance, UBS, and Sygnum have joined forces to explore the feasibility of a digital Swiss franc. This initiative, led by the Swiss Bankers Association (SBVg), aims to modernize the Swiss financial system and enhance its competitive edge in the digital economy. The project, named 'Digitale Währungen' or 'Digital Currencies,' has garnered support from large Swiss banks, which have signed a memorandum of understanding (MoU) to jointly conduct a proof of concept (PoC) for digital Swiss franc deposit tokens. Under the MoU, deposit tokens are described as a blockchain-based payment method similar to traditional deposits. They enable bank customers to use distributed ledger technology (DLT) and smart contracts to transact on a new, innovative payment platform. Initially, the deposit token PoC will focus on two use cases: simple payments and deliveries between participating banks, and payment transactions with custody functions.