According to Odaily Planet Daily, major Swiss banks such as PostFinance, UBS and Sygnum have joined forces to explore the feasibility of the digital Swiss franc. The initiative is led by the Swiss Bankers Association (SBVg) and aims to modernize the Swiss financial system and strengthen its competitive advantage in the digital economy.
Dubbed âDigitale WĂ€hrungen,â the project has the backing of major Swiss banks, which have signed a memorandum of understanding (MoU) to work together on a proof-of-concept (PoC) for a digital Swiss franc deposit token.
According to the MoU, deposit tokens are a blockchain-based payment method similar to traditional deposits that allow bank customers to conduct transactions on a new innovative payment platform using distributed ledger technology (DLT) and smart contracts.
Initially, the deposit token PoC will focus on two use cases: simple payments and deliveries between participating banks, and payment transactions with escrow capabilities.
