Swiss National Bank economist says blockchain is not suitable for CBDC

The underlying technology of blockchain, Bitcoin and other cryptocurrencies (Bitcoin), according to an economist at the Swiss Central Bank, this is not the correct solution for the central bank’s digital currency.

Carlos Lenz, chief economist of the Swiss National Bank, believes that blockchain-based decentralization is not efficient for state-controlled digital currencies (such as digital francs, Swiss German newspaper The Handelszeitung) Report Thursday.

According to reports, the economist pointed out that there are plenty of technical opportunities for establishing a digital franc. “One can imagine opening a direct account at the National Bank. It’s not that we want to do this, but that will be the simplest form,” Lentz said. He pointed out that another option may be to use blockchain technology to implement digital currency operations without any central authority. However, the blockchain is “very inefficient”, the economist believes: “I think the decentralized solution is not ideal.”

Lentz went on to say that the Swiss National Bank currently has no plans to introduce a digital franc. The economist emphasized that “the existing payment system works well” and Switzerland does not need a CBDC. The economist explained in detail that if Switzerland is more willing to stay away from the development of CBDC, then the Swiss franc is not at risk of being replaced by other currencies such as the euro.

The implementation of state-controlled digital currency blockchain technology has been questioned by many global financial experts. Thomas Moser, an alternate member of the Swiss National Bank, argued last year that Retail CBDC does not need to use blockchain Because the trust has been provided by the central party of the central bank.However, the Swiss National Bank still Explore the benefits of blockchain Implementation of CBDC last year.

related: The Bank for International Settlements joins the cross-border CBDC project of France and the Swiss National Bank

Despite ongoing debates about whether CBDC really requires blockchain, the Chinese government continues to experiment with distributed ledger technology to simplify CBDC transactions. In mid-June, the People’s Bank of China successfully completed the annual salary payment work. Digital RMB using blockchain technology.