According to the Swiss Central Bank, the technology underlying digital currencies such as Bitcoin will reshape securities settlement and cross-border payment systems.
In her speech in Zurich, the bank’s board member Andrea Maechler said, “The underlying Distributed ledger technology indeed has significant potential, especially in complex areas such as securities contracting and border payment transactions. However, the technology still has to prove itself in practice.”
Nine years after the birth of Bitcoin, central banks around the world are starting to realize the pros and cons of digital currencies. The decentralized ledger technology on which they are based has also caught the attention of Wall Street, as it can drastically reduce costs in various banking transactions.
‘Central banks are unnecessary to issue digital currency’
On the other hand, Maechler, central bank He said that a digital currency issued by the company is not necessary for the public, has no advantages and may even pose risks to financial stability.