The Swiss stock exchange has asked country’s central bank to issue a stablecoin to settle payments on its new digital securities trading platform, SDX. Should the Swiss National Bank (SNB) agree, it would represent a major departure from its cautious digital currencies policy. The request was put in by stock exchange operator SIX Group, and was revealed at the Crypto Valley Association conference Wednesday.
Speeding up the SDX Platform
SIX are firmly pushing the crypto bandwagon in the region, having launched the world’s first crypto ETP in November last year, with its tongue-in-cheek ticker of HODL. Under the new plans, traders on the company’s forthcoming platform would be able to swap cash for the stablecoin which would be used to pay for securities bought on the exchange, increasing the speed and fluidity on the exchange itself while the cash value of the token remains intact. The advantage of an SNB-issued stablecoin is clear for SIX and its member banks – the involvement of the bank would eliminate the risk of the basket of currencies underpinning the token going bust. Token holders would therefore be able to use the platform with the certainty that the money will still be there when they want to cash out.
Avenir Suisse Agrees
SIX’s plans are backed by the findings of one of Switzerland’s most prominent business think tanks, Avenir Suisse, who earlier this month called on the central bank to issue its own cryptocurrency. The think tank stated at the time that creating a digital token based on the national currency represented an essential step along the path to creating a new blockchain economic model. No decision has been made on SIX’s proposal and there is no timeline for when it might be, with an SNB spokesperson saying that discussions were ongoing about the best ways to handle the cash element of the exchange.