Through an alliance between the Swiss Central Bank and some exchange companies, this country will seek to design PoC for digital currencies that will be included in its financial system.

In the cryptocurrency market there are options that do not have greater acceptance among those who follow this type of technology. In many opportunities its uses and potentials can be a topic of discussion.

Despite this, some financial institutions around the world are in trying to develop significant alternatives to cryptocurrencies. An example of this is the innovative project that the Central Bank of Switzerland has been creating “hand in hand” with the exchange company Six Digital Exchanges (hereinafter, SDX).

The project consists of driving a so-called proof of concept (PoC) which helps determine the best use for digital currencies, as a kind of research that will address the main issues of these assets for different countries or cases.

The news was revealed a few days ago by the SDX Company through its official website, where it was also revealed that the main objective of this initiative is to verify whether it is possible to use these digital assets as a method of settlement among users who employ these technologies in the financial market.

It is also known that the Bank for International Settlements of Switzerland (BIS) supervises the processes online through theFinancial Technology Research Centre, an agency that depends on BIS and was tested to develop projects similar to these ones.

To initiate the research processes, SDX authorized the use of its platform as a structural basis to begin experimenting on the alternatives necessary to integrate the algorithm of digital currencies into Distributed Ledger Technologies (DLT) platforms.

Its plans include different options for the use of the banking institution in its efforts to innovate and improve the new generation of financial processes.

The main plan of the project includes the creation of digital tokens of Swiss francs that will be used within the financial market of the SDX platform.

In addition, it is expected that a direct connection with the compensation system between the country’s banks can be included, this idea emerges as a method of technological integration and updating.

It can be deduced that the intention of the Central Bank of Switzerland is to include digital currencies as liquidation method for the use of wholesale markets.

Jos Dijsselhof, who is CEO of Six, commented he is motivated with the alliance towards the project, thus visualizing the possibilities of improving the digital financial market in Switzerland.

“As operators of the Swiss financial market infrastructure, we welcome the initiative of the SNB and BIS to conduct further research on these innovative financial technologies in Switzerland. We are pleased to contribute to this initiative and, through Six Digital Exchanges, explore the technological possibilities for the BNS to support token-based financial ecosystems in the future by providing digital currencies for financial market participants”, he said.

This country now will investigate new uses for blockchain technology and will contribute with the adoption of digital assets.

By María Rodríguez

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