Swiss Central Bank Warns Stablecoins Could Disrupt Banking and Monetary Policy

The Swiss National Bank (SNB) has raised concerns about the potential risks stablecoins pose to traditional banking systems. Petra Chudin, a member of the SNB’s Governing Board, warned at the KOF Prognosetagung 2026 in Zurich on September 30 that widespread stablecoin adoption could disrupt monetary policy and reduce banks’ lending capacity.

Chudin highlighted the risk of funds shifting from traditional bank deposits to stablecoins, which could deprive banks of a key funding source. This would force banks to seek more expensive market-based financing, potentially limiting their ability to lend to the economy.

For central banks, the challenge is even greater. Monetary policy relies on banks adjusting interest rates to influence spending and investment. If stablecoins reduce the share of money within the traditional banking system, this policy transmission mechanism could weaken.

Chudin also emphasized the importance of monetary unity, noting that stablecoins, as private obligations, may not function identically to central bank money. This could lead to a fragmented monetary system. However, the SNB remains open to digital money technology and is exploring central bank digital currencies (CBDCs) for tokenized asset transactions.

Meanwhile, global financial institutions are actively experimenting with tokenized deposits and blockchain-based settlements. In the UK, major banks like Barclays, HSBC, Lloyds Banking Group, and NatWest completed the first interbank transactions involving tokenized deposits in September. European banks and global financial groups are also developing their own stablecoin projects, signaling a shift away from the traditional “cryptocurrency versus banks” narrative.