Banks test the introduction of digital francs

(CONNECT) Switzerland is to get a digital currency. To this end, six banks in the country have joined forces in an initiative, according to a UBS press release. Together, they are setting up a protected digital live environment, a so-called sandbox, to test selected use cases of a Swiss franc stablecoin in the second half of 2026. The background to this is the fact that regulated stablecoins are gaining ground worldwide as a secure and inexpensive means of payment.

In addition to UBS, PostFinance from Berne, Sygnum, Raiffeisen from St. Gallen, Zürcher Kantonalbank and Banque Cantonale Vaudoise from Lausanne are also involved. The technical infrastructure for issuing the digital franc is provided by Bern-based Swiss Stablecoin AG. According to the information provided, the sandbox is also open to other interested banks, companies and institutions that would like to contribute to the development of a CHF stablecoin.

The communication sets out three overarching objectives that the companies involved are pursuing. Its initiative is intended to support the development of a Swiss ecosystem for digital money, build new skills and experience in dealing with digital means of payment and gain practical insights.

Stablecoins are digital currencies whose value is linked to stable references such as the dollar, euro or gold. This is intended to avoid the volatility of traditional cryptocurrencies. Digital money serves as a bridge between traditional money and the crypto ecosystem. It is often used for payments, trading and storing value. ce/mm