Member of the governing Board of the Swiss National Bank (BNS) Andrea Mehler (Andrea Maechler) stated that digital currency Central Bank (CBDC) may pose a threat to financial stability. Moreover, its production does not involve tangible benefits, she added.
Andrea Mehler noted that the blockchain technology has the potential to reduce costs, increase efficiency and transparency of cross-border payments and securities settlement. However, she stressed that technology is “does not meet the requirements expected from a system of gross settlement in real time (RTGS) from the point of view of scalability, data security and reliability”.
Their share of criticism from Mehler received cryptocurrency, which it considers “comparable with money, not at all”. But the sharp observations of one of the three top leaders of the BNS were accounted for CBDC — concept, study close the Central banks around the world.
Mehler noted that BNS opposes the idea, and added:
“To guarantee people an effective system for cashless retail payments, digital currency the Central Bank is not needed. It is unlikely to bring any benefits, but will mark the beginning of the countless risks regarding financial stability.”
Earlier, critically evaluated the idea of issuing CBDC analysts of the Bank for international settlements (BIS). A group of researchers from the institution, which is called “Central Bank of Central banks”, wrote that “the introduction CBDC will cause fundamental problems that go far beyond payment systems”.
The ECB Executive Board member Benoit coeure (Benoît Cœuré) also noted that CBDC “showed undeniable advantages for wholesale payments and beyond”. But technology and design are evolving rapidly, carefully, he added.