Swiss Central Bank Warns Stablecoins Hinder Monetary Policy

The Swiss National Bank (SNB) is concerned about the impact of stablecoins on monetary policy, according to governing board member Petra Tschudin. Speaking at an event in Zurich, she stated that large stablecoins not integrated into the existing two-tier financial system create a situation where central banks have difficulty fulfilling their mandate.

Tschudin's remarks build on the SNB's previous skepticism towards stablecoins and crypto assets, despite being at the forefront of experimenting with digital forms of central-bank money. The institution has been issuing a blockchain-based digital currency for banks since 2023 and plans to continue until at least 2028.

While acknowledging that stablecoins can improve the current financial system by allowing international companies to send money across the world at lower costs, Tschudin emphasized that they also pose risks. She noted that large stablecoins can complicate the transmission of monetary policy and called for regulation to safeguard policymakers' influence.