The central bank of Switzerland has revealed it will be working with private tech solution firms and a digital bourse to develop the country’s first blockchain-backed digital currency.

The Swiss National Bank is jointly developing the digital currency with SIX Digital Exchange and Bank for International Settlements, according to Crypto News.

Part of the Swiss Backed Innovation Hub

The decision by the Swiss National Bank (SNB) to work with the Bank for International Settlements (BIS) and SIX Digital Exchange (SDX) was announced in a press release dated October 2019.  It was pointed out in the release that the digital money would be one of several developments by the innovation hub established through cooperation between the three entities. The currency is to be the result of an effort towards incorporating virtual central bank funds into a distributed ledger technology system and will be used to settle tokenized assets.

The main function of the hub is to uncover technological trends that may have an impact on central banks Singapore and Hong Kong are also slated for involvement in the collective.

Staying In-step with Tech Advancements

SNB Board Chairperson Thomas Jordan said through a press release that the bank is keeping an eye on the digitization of the financial world and technological changes within its scope.

Another project being handled by the innovation hub pertains to an assessment of the need for central banks to monitor dynamic electronic markets.  SNB is looking to maintain expertise in the financial world and has acknowledged the need to stay abreast of tech advancements.