Swiss National Bank: Stablecoins Threaten Monetary Policy

Stablecoins Emerge as New Concern for Swiss National Bank

The Swiss National Bank (SNB) has identified a new area of concern, shifting its focus from inflation and currency fluctuations to the burgeoning world of stablecoins.

Speaking at an event in Zurich on September 30, 2026, SNB Governing Board member Petra Tschudin voiced apprehension that large-scale stablecoin adoption could disrupt the transmission of monetary policy to the real economy. Her proposed solution was robust regulation, designed to ensure central bankers retain control over financial levers.

Tschudin’s primary worry centers on what economists refer to as monetary policy transmission. This is the process by which a central bank’s policy rate adjustments are intended to ripple through the financial system. Commercial banks are expected to adjust their lending and deposit rates accordingly, ultimately impacting households and businesses.

This transmission mechanism operates within a two-tier financial system, where the central bank interacts with commercial banks, which in turn serve the broader public. Tschudin argued that stablecoins function outside this established framework. The concern is that if deposits shift away from traditional banks and into stablecoins, the channels through which the SNB influences borrowing costs could become less effective.

In Tschudin’s view, this could ultimately undermine the SNB’s ability to manage borrowing costs.

However, she did not dismiss the underlying technology. Tschudin acknowledged the potential of stablecoins to modernize payment systems, citing their ability to offer lower fees for international transfers as an example.

Her emphasis was on establishing appropriate safeguards rather than outright prohibition. Tschudin stressed that regulatory measures are essential to ensure the central bank can continue to fulfill its mandate.

This concern is not entirely new. The SNB had previously flagged stablecoin risks in its July 2026 financial stability report, highlighting two principal dangers. The first was disintermediation, a term describing money bypassing traditional banking channels. The second was run risk, where a stablecoin with insufficient reserves could face a surge in redemption requests that it cannot fulfill.

The same report offered some reassurance regarding the domestic market. As of mid-2026, the market for Swiss franc-denominated stablecoins remained modest, with a market capitalization below $50 million. Consequently, the SNB assessed domestic risks as manageable for the time being.

Switzerland is currently developing a new licensing category, “payment instrument institution,” for issuers of fiat-backed stablecoins. This license will be part of amendments to the Financial Institutions Act.

In parallel, the SNB is exploring its own digital currency alternatives. Through Project Helvetia III, the bank is experimenting with a wholesale central bank digital currency (wCBDC), a tokenized form of central bank money intended for use among financial institutions. This project has been extended through at least 2028.