Swiss Government Quashes ‘E-Franc,’ Says Current Risks Outweigh Benefits

The government of cryptocurrency-friendly Switzerland has shot down the idea of issuing a digital Swiss franc, for now.

According to a Dec. 13 press release published on the Federal Council’s website, the Federal Council approved a report exploring the opportunities and risks of issuing a digital form of the country’s national currency, the franc. 

Following an analysis, the Federal Council concluded that a central bank digital currency (CBDC) cannot meet expectations for payment efficiency, effective monetary policy, and a more stable financial system. The council said:

“Universally accessible central bank digital currency would bring no additional benefits for Switzerland at present. Instead, it would give rise to new risks, especially with regard to financial stability.”

The Swiss National Bank (SNB) shares the government’s view, arguing that the new risks to monetary policy and financial stability would pose a major challenge. As such, the government only sees the…