CVA Social Club: Using CBDC in Business, Lessons Learned from the Helvetia Pilots

SDX operates as a regulated digital exchange and CSD running fully on DLT infrastructure, focusing on B2B services with financial institutions

The Helvetia CBDC pilots evolved through multiple phases:

• Phase 1 (2018): Proof of concept in test environments
• Phase 2: Integration with private sector banks and core banking systems
• Phase 3: Live transactions and bond issuance using wholesale CBDC

Key learnings from CBDC implementation:

• Governance and control mechanisms are crucial for central banks
• Integration with existing banking systems requires significant effort
• Pre-financing and fragmentation across networks remain challenges

Switzerland’s approach differs from other countries:

• Focuses on wholesale CBDC (bank-to-bank) vs retail approach
• Uses private permissioned DLT infrastructure
• Emphasizes regulated environment and central bank control

Benefits of DLT-based settlement:

• Reduces counterparty risk through instant settlement
• Enables asset and cash settlement on same platform
• Provides programmability through smart contracts
• Eliminates need for intermediary clearing houses

Challenges in implementation:

• Difficult to prove efficiency gains without scale
• Need to balance innovation with existing services
• Integration with traditional banking infrastructure
• Regulatory compliance and control requirements

Future outlook:

• Expected growth in tokenized assets across various blockchains
• Need for interoperability between different platforms
• Focus on wholesale rather than retail CBDC in Switzerland
• Continued exploration of use cases and business models