Swiss National Bank Warns Stablecoins Could Disrupt Monetary Policy
Petra Tschudin of the Swiss National Bank warned that digital stablecoins could weaken the central bank's ability to control interest rates and lending.
Governing board member Petra Tschudin warned on September 30 that digital stablecoins could disrupt the transmission of monetary policy. Speaking at an event in Zurich, Tschudin stated that stablecoins operating outside the traditional two-tier financial system increase the burden on central banks to fulfill their mandates.
Tschudin cautioned that a stablecoin version of the franc would not be automatically guaranteed to equal a real franc, which could undermine monetary uniformity. She noted that if households and businesses shift funds from commercial banks into stablecoins, the resulting decrease in available lending would weaken the central bank's ability to steer borrowing costs and interest rates through policy rate changes.
