Swiss Central Bank Warns Stablecoins Threaten Monetary Policy Control

Switzerland's central bank has expressed concerns that stablecoins could hinder its ability to control monetary policy. Governing board member Petra Tschudin said large stablecoins not integrated into the existing financial system create a situation where it's harder for central banks to fulfill their mandate.

The Swiss National Bank (SNB) is experimenting with digital forms of central-bank money, including a blockchain-based currency for banks. However, it has warned that stablecoins may not deliver on promised at-par convertibility and have low adoption rates.

Tschudin acknowledged the potential benefits of stablecoins in improving international transactions but emphasized the need for regulation to safeguard policymakers' influence.