SNB Warns Stablecoins Complicate Monetary Policy Transmission
The Swiss National Bank (SNB) has expressed concerns about stablecoins potentially disrupting the transmission of monetary policy. Governing Board member Petra Tschudin said that large stablecoins not integrated into the existing two-tier financial system create a situation where central banks have difficulty fulfilling their mandate.
Tschudin emphasized that modernizing the payment system is sensible, but added that 'it's harder for central banks to fulfil their mandate' when dealing with stablecoins. The SNB has been skeptical of stablecoins and crypto assets, yet it continues to experiment with digital forms of central-bank money.
The institution started issuing a blockchain-based digital currency for banks three years ago as part of its wholesale CBDC project, which will continue until at least 2028. Tschudin noted that while stablecoins can improve the financial system by reducing costs for international companies to send money across borders, they also pose challenges.
The SNB's tokenized currency is not available for consumer use, unlike other CBDC pilots such as those in China or the euro area, which focus on retail applications. Tschudin reiterated the bank's view that the benefits of retail CBDCs do not outweigh the risks, and expressed concern about the limited adoption and usage of their own tokenized currency.