Major Swiss Banks Jointly Conduct Digital Swiss Franc Deposit Token Proof of Concept

Major Swiss banks such as PostFinance, UBS and Sygnum have teamed up to explore the feasibility of a digital Swiss franc. The initiative, led by the Swiss Bankers Association (Schweizerische Bankiervereinigung, or SBVg), aims to modernize the Swiss financial system and strengthen its competitive advantage in the digital economy. The project, called “Digitale Währungen”, or “Digital Currencies” in English, is backed by major Swiss banks, which have signed a memorandum of understanding (MoU) to work together on a proof of concept (PoC) for a digital Swiss franc deposit token. According to the MoU, a deposit token is a blockchain-based payment method similar to a traditional deposit. It allows bank customers to transact on a new innovative payment platform using distributed ledger technology (DLT) and smart contracts. Initially, the deposit token PoC will focus on two use cases: simple payments and deliveries between participating banks, and payment transactions with escrow capabilities. (Cryptonews)