“Buying bitcoin is not a problem for us, we can do that either directly or can buy investment products which are based on bitcoin.
However, cryptocurrencies and cryptocurrency-based tokens are of only limited use as payment instruments, stores of value and units of account because they are subject to major fluctuations.
These are also privately issued digital tokens, however they are pegged to official currencies or backed by stable assets in an effort to minimise fluctuations in value.
“The benchmark for assessing utility, efficiency, reliability and security is set by the existing systems and the regulations governing comparable activities.
Or, two, tokens could be made available only to commercial banks and other financial market participants, just like sight deposits at the central bank today.
“In Switzerland, granting all households and companies access to digital central bank money, whether in the form of Swiss franc tokens or sight deposits, would involve risks.
“The introduction of a state-issued digital token exclusively for financial market participants requires in-depth analysis.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice.