As I explained earlier, the SNB as the bankers’ bank ensures that there is a reliable foundation for the settlement of payments. In the retail payments space, financial services providers use this as a platform for delivering their services to customers, doing so in competition with one another. Operating on these two levels, this system ensures that the financial sector remains agile and safe, and that the best ideas can thus take hold in the market without this compromising the systemically important segment. Digital central bank money – few advantages, significant risks Ladies and Gentlemen, before I sum up I would like to say a few words on the subject of digital central bank money for the general public. A more prominent role for central banks in the end customer segment is currently being discussed, involving this and other associated terms such as ‘cryptofranc’ and ‘e-franc’. However, we are convinced that private sector solutions are better suited for meeting end customers’ needs in this area. Digital central bank  Page 7/8  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 by calling into question the tried-and-tested two-tier system. Instead of operating as the bankers’ bank as it does today, the SNB would be acting as a commercial bank for end customers. This would exacerbate the threat posed by bank runs in times of crisis.
Moreover, Switzerland would be alone in adopting such a solution: no other central bank has implemented such a solution to date. This brings me to the end of my speech. Please allow me to briefly sum up the key points. Conclusion I hope I have been able to demonstrate clearly why cryptocurrencies are not genuine rivals to conventional currencies. That said, the underlying distributed ledger technology does indeed have potential, especially in complex areas such as securities settlement and cross-border payment transactions. Nevertheless, the technology still has to prove itself in practice. As well as being efficient, DLT-based solutions must not give rise to any systemic risks in the financial market infrastructure. In the systemically important segment of cashless interbank payments, the SNB plays an active role by providing a reliable foundation. Any future DLTbased systems will have to be linked with the latter in some form or other. In turn, in the area of cashless retail payments, the private sector is better placed to address customers’ needs. The division of roles between the central bank (as the bankers’ bank) and commercial banks (as the interface to the end customers) has certainly proved its worth over the years. This brings me to an important conclusion: If cashless payment transactions are efficient and innovative, there is no need for digital central bank money. What is important is that we remain agile. Our existing set-up contributes to the stability of the financial system, while at the same time allowing sufficient leeway for innovation.