World Bank to Settle Swiss Digital Bond on June 11, Facilitating Wholesale CBDC Payments

IconCNT16 May, 2024

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World Bank to Settle Swiss Digital Bond on June 11, Facilitating Wholesale CBDC Payments

The World Bank has recently priced its 200 million Swiss franc digital bond issuance, which is set to settle on June 11 through the SIX Digital Exchange (SDX). This move marks a significant step in the exploration of digital currencies, as it will enable wholesale Central Bank Digital Currency (CBDC) payments in Swiss francs. The World Bank's digital bond issuance is notable for several reasons. Firstly, it is one of the first major financial institutions to issue a digital bond, underscoring the growing interest in digital assets within the financial sector. Secondly, the settlement of the bond via SDX highlights the growing role of digital exchanges in facilitating digital asset transactions. This development is also significant in the context of CBDCs. CBDCs are digital forms of fiat currencies issued by central banks, and they have the potential to transform the financial landscape by enhancing cross-border payments, reducing settlement times, and promoting financial inclusion. The World Bank's digital bond issuance and its support for wholesale CBDC payments in Swiss francs demonstrate the growing interest in CBDCs and their potential to shape the future of finance.

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