State-backed crypto would ‘risk financial security’, says Swiss banker

If central bank digital currencies (CBDC) are created, it could bring about “incalcuable risks” without much reward, a member of the Swiss National Bank’s governing body has claimed.

Andrea Maechler said: “Digital central bank money for the general public is not necessary to ensure an efficient system for cashless retail payments. It would deliver scarcely any advantages, but would give rise to incalculable risks with regard to financial stability.”

Maechler was speaking in Zurich and compared distributed ledger technology to blockchain. While admitting that the technology would reduce costs, improve efficiency and offer transparency, she also warned the audience that scalability, data security and reliability are still very much in question.

“[Cryptocurrencies are] not comparable with money – far from it,” she added.