The Swiss National Bank (SNB) and the Bank for International Settlements (BIS) have signed an operational agreement on the BIS innovation hub centre in Switzerland to explore digital central bank money and distributed ledger technology (DLT).
The centre will identify and develop in-depth insights into critical trends in technology that affect central banking.
It will also develop public goods in the technology space to enhance the worldwide financial system functioning.
The hub centres will be set up in Switzerland, Hong Kong SAR and Singapore in the initial phase.
The Swiss centre, which will serve as a focal point for a network of central bank experts on innovation, will initially carry out research on two projects.
Under the first project, the centre will examine the integration of digital central bank money into a DLT infrastructure.
The second project will address the increase in requirements placed on central banks to be able to track and monitor fast-paced electronic markets.
SNB chairman of the governing board Thomas Jordan said: “The SNB has for some time been closely following the digitalisation of the financial sector and technological innovations in the areas covered by its mandate.
“Through the cooperation at the BIS Innovation Hub Centre in Switzerland, the SNB will be able to further expand its expertise in the area of financial markets and their infrastructures. We look forward to bolstering our collaboration with the BIS and other central banks in this space.”