If a recent request made by the Swiss stock exchange (SIX) receives approval, then we could see the first digital currency launched for use on a national stock exchange by a country’s central bank.
SwissInfo reported June 26 that stock exchange operator, SIX Group at the Crypto Valley Conference in Switzerland this week requested that the country’s central bank should release a stablecoin digital currency.
SIX Group reportedly plans to launch a digital trading platform (SDX) that would facilitate the trading of securities such as stocks and bonds by institutional investors as well as foreign parties.
To operate such an exchange successfully, however, SIX identified the need for a digital currency that would be backed 1:1 by Switzerland’s native fiat currency (CHF). Providing such a tool would allow the exchange to “accept CHF payments from member banks in central bank money and issue equivalent tokenized CHF.”
The tokenized CHF or digital currency could then also be quickly converted to fiat anytime a trader wants to do so.
In this regard, a representative of SwissInfo that SIX Group would “definitely favour a central bank issued stablecoin,” probably for the investor confidence that it could bring to the new digital securities platform planned by the exchange.
Interestingly, a representative of the Swiss National Bank SNB confirmed in the same report that they were already holding talks with SIX “about different options on how to settle the cash side.” However, the parties had not reached a final decision, the unnamed official noted.
Meanwhile, in another update regarding the digital securities platform planned by SIX, we reported that the exchange could launch the new subsidiary next year. Down the line, SIX also intends to issue its token while also making sure that it conducts due diligence on any project that wants to use their platform for token issuance.