Swiss National Bank warns stablecoins may disrupt monetary policy

Swiss National Bank: The Swiss National Bank serves as Switzerland's central bank, responsible for conducting monetary policy to ensure price stability and overseeing the financial system. Its Governing Board members, including Petra Tschudin, actively address emerging risks from financial innovations. In recent remarks, Tschudin highlighted how large stablecoins detached from the existing two-tier banking structure could undermine central banks' ability to transmit policy decisions effectively, underscoring the need for targeted regulations. Regulatory Stance: The Swiss National Bank actively engages in national and international discussions on stablecoin regulation to mitigate potential risks while supporting beneficial payment innovations. Monetary Policy Transmission: Central banks are examining how private digital assets operating outside traditional systems may reduce their influence over credit conditions and borrowing costs in the economy.