According to Carlos Lenz, chief economist at the Swiss National Bank, the decentralized nature of blockchain is not well suited for state-controlled digital currencies.
Lenz stressed that blockchain is not very efficient when it comes to centralized digital currencies. When designing state cryptocurrencies, various technology options are possible, including platforms using blockchain.
“When creating a digital franc, you can create a system with direct accounts in the National Bank. I will not say that this is the best option, but it is the simplest one. Or use blockchain, but I don’t think a decentralized solution would be ideal, ”said the economist.
Lenz also stressed that so far the Central Bank of Switzerland does not plan to really develop the digital franc, since the existing payment system is “working well.” In Switzerland, there is simply no need for a government cryptocurrency.
Despite the fact that there are no plans to launch the digital franc yet, the Central Banks of Switzerland and France recently launched an experimental project “Project Jura” to test state digital currencies for international payments.
Back in 2019, cryptocurrency skeptic Nouriel Roubini spoke about the fact that state cryptocurrencies do not require a blockchain at all.
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