Over 90% of the world’s central banks are now considering, developing, or piloting a CBDC. Very Small Nations/Territories may be without resources, financial infrastructure, or urgent need to assign a central bank team to a CBDC project.

It is extremely difficult to detail a certain number of nations that possess national currencies with no study of a digital equivalent, since any list would be transient and would simply include the smallest, least developed economies whose central banks are not publicly reported to international bodies.

In practical terms, almost every economy of scale is under CBDC exploration.

Switzerland are particularly involved in the development and research of Central Bank Digital Currencies (CBDCs) but on very different approach than the rest of the world.

The SNB is one of the earliest major central banks to introduce a real, live wholesale CBDC to banks for settlement of tokenized securities transactions in a production-level digital exchange (SIX Digital Exchange – SDX). The pilot has been underway since late 2023 and is until at least mid-2027.

SNB officials have repeatedly indicated they see no near-term need for a retail CBDC to reach the general population, warning that it can destabilize the financial system and redefine the commercial banks’ role. They prefer to make the current payments system improved.

SNB is Involved in key global research projects including Project Jura (tokenized cross-border settlement against the Euro) and Project Agorá (collaboration with leading central banks to explore tokenized cross-border payments).

Planet’s “safe haven” currency!

Based on its strong reputation, holding the Swiss franc (CHF) is generally a good thing to do for an individual focusing on wealth preservation and security amid global uncertainty.

Swiss franc is among the world “safe haven” currencies. It is invested in by investors when they fear economic or geopolitical uncertainty in the world.

• Political Neutrality: Switzerland has a long, proven record of political stability and neutrality.
• Economic Strength: The country’s economy is highly stable, well-developed, and diversified, supported by sound fiscal discipline (low public debt) and low inflation credibility.
• Financial System: Switzerland has one of the most sophisticated and reliable financial systems in the world.

The greatest strength of the Swiss franc is its ability to keep its value, and even gain value, against other major currencies, especially during a crisis.

• Hedge Against Inflation: The Swiss National Bank (SNB) has a firm mandate focused on price stability, traditionally contributing to lower inflation rates compared to most other countries, keeping the franc’s purchasing power intact.
• Currency Diversification: For someone who holds assets primarily in another currency (e.g., Euro, US Dollar, etc.), holding some Swiss francs offers a hedge against their base currency getting weakened or devalued.

The CBDC Context

The digital franc discussion does not change the safe-haven status of the physical Swiss franc.

• The SNB effort on the digital franc is currently focused on wholesale use (bank-to-bank), as opposed to a retail CBDC for consumers.
• Even if a retail electronic franc were ever produced, it would be a central bank digital liability—akin to physical currency—and would have the same stable and secure safe-haven characteristics.

If stability and security are our objectives, the Swiss franc remains a good choice for diversifying part of our fortune. As an investment, however, it is more of a holding instrument, as compared to high yield, since Swiss rates may be low at present.