Swiss central bank asked to issue digital currency for its stock exchange..

News from Swiss land:

The Swiss stock exchange wants the country’s central bank to issue a form of cryptocurrency to settle payments on its new digital securities trading platform. If the Swiss National Bank (SNB) agrees, it would represent a departure from its cautious policy on digital currencies.

Stock exchange operator SIX Group revealed at the Crypto Valley Association conferenceexternal link that traders on its forthcoming SDX platform would be able to swap cash for a new digital token. This token would be used to pay for securities bought on the exchange and could be redeemed for cash when required. Digital tokens backed by conventional currencies are known as stablecoins because the peg reduces price volatility.

SIX, which is owned by a consortium of member banks, restricts access to its trading platforms to professional “qualified” investors. Its SDX platform, that will trade digital-only versions of stocks, bonds and other securities, is due to be unveiled early next year.

“SDX member banks will be able to settle their trades and other obligations against tokenised CHF within SDX once we are up and running. To facilitate this, SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenised CHF in SDX. The value of tokenised CHF would be pegged 1:1 with CHF at all times. We most definitely favour a central bank issued stablecoin,” SIX said in an emailed statement.

An SNB representative confirmed to swissinfo that the central bank is holding talks with SIX “about different options on how to settle the cash side” of trades. But no final decision has been made.

Hmm..

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