The Swiss central bank is preparing a cross-border digital currency test

LONDON, April 29 (Reuters) – The Swiss central bank is planning its first digital currency test with another country, one of its board members said on Thursday.

Dozens of central banks around the world plan to launch digital currencies in the coming years, but making them easily exchangeable and able to be used to transact abroad will be crucial.

On Switzerland’s next steps, Thomas Moser, a deputy member of the Executive Board of the Swiss National Bank, said during an event on digital currencies: “We will try some cross-border functions.”

“There will be a different central bank and a different currency than the Swiss franc. It will be real, there is no simulation. There will be another central bank with their system, so it will be like going live.”

Moser would not reveal who the other central bank would be.

It will be a milestone in Europe, but some of Asia’s central banks have already taken similar steps.

Last year, the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand developed a prototype to transfer funds in central bank digital currency and make payments between each other.

China’s central bank, which is well advanced with a digital yuan, said in February that it would join the “Multiple CBDC Bridge” currently operated by the central banks of Hong Kong and Thailand and the Bank for International Settlements. (Reporting by Marc Jones, Editing by Nick Zieminski)

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