SNB Warns Stablecoins Threaten Central Banks' Ability to Set Interest Rates

The Swiss National Bank (SNB) has expressed concerns about stablecoins and their potential to complicate monetary policy transmission.

Governing Board member Petra Tschudin stated that large stablecoins not integrated into the existing financial system create a situation where it's harder for central banks to fulfill their mandate.

The SNB has been experimenting with digital forms of central-bank money, including a blockchain-based digital currency for banks, which is set to continue until at least 2028.

Tschudin noted that stablecoins can also improve the current financial system by allowing international companies to send money around the world at lower costs. She emphasized the importance of competition in bringing innovation.