CHFD digital franc: tests with 9 companies are underway

Context

In Brief

• CHFD is a stablecoin worth exactly 1 Swiss franc (CHF)
• Practical test with 9 companies through end of 2026 in a protected environment
• Blockchain transactions; payments and digital assets under examination

Key Facts

• What: Digital franc CHFD (stablecoin pegged to CHF)
• When: Operational since end of June 2026, testing through end of 2026
• Where: Project coordinated at Swiss national level
• Who: 9 companies including UBS, PostFinance, SIX, Twint, Sygnum, Raiffeisen, ZKB, BCV, Swiss Stablecoin AG
• Ratio: 1 CHFD = 1 CHF
• Technology: Blockchain for verified transactions

Nine Swiss companies have launched practical tests of the digital franc (CHFD) as a stablecoin, an innovative tool announced last April. The project involves major banks such as UBS and PostFinance, regional institutions (Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV), the Swiss Stablecoin AG platform, stock exchange operator SIX, and payment app Twint. This representative cross-section of the Swiss financial system is working in parallel to define concrete applications for a national digital currency.

CHFD is technically operational since the end of June and is pegged to the Swiss franc at a one-to-one ratio: one CHFD corresponds to one Swiss franc (CHF). Transactions occur via blockchain, a digital ledger in which operations are recorded and jointly verified by multiple computers, ensuring transparency and security. The pilot program will continue until the end of 2026 in a protected digital environment — no citizens or companies outside the nine participants can access or directly test it at this stage.

Which applications are being examined?

The tests focus on concrete areas of the Swiss financial system and payments. Among the applications being examined are automated payments between financial institutions (fundamental for the efficiency of bank settlement) and the management of digital assets (securities, contracts, digital goods). Participants also intend to verify whether programmable payments — transactions that execute automatically when certain conditions are met — can prevent fraud in online markets, enable fairer ticket sales for events, or be used for public authority payments (for example, tax payments, municipal fees). Learn how to best manage your tax return in Switzerland.

This pragmatic approach reflects Swiss interest in testing digital currency in real-world scenarios of the financial system before any decision on a general public launch.

Operational details

How Does CHFD Work and Why Is Switzerland Experimenting With It?

Digital franc represents a technological evolution of Swiss currency. Unlike volatile cryptocurrencies (Bitcoin, Ethereum), a stablecoin is anchored to a fixed value — in this case the CHF franc. This ensures stability and allows it to be used in contexts where volatility would be a problem: recurring payments between companies, recurring commercial transactions, payments to public entities, settlement of commercial contracts.

Switzerland has chosen to experiment with CHFD with nine financial and technological players — a representative sample of the national financial system from major banks to innovative payment services. Blockchain enables verified, transparent transactions that are potentially faster than traditional centralized settlement systems used today (such as SIC or Swiss Interbank Clearing). Every operation remains recorded and verifiable, reducing fraud risks and increasing efficiency.

What Concrete Advantages for the Swiss Financial System?

For Swiss banks and payment services, CHFD opens concrete scenarios. Automated payments between financial institutions could significantly reduce current settlement times, accelerating cash flows for companies. The management of digital assets could facilitate the trading of securities, bonds, and smart contracts in a faster and more transparent way, without paper intermediaries.

Programmable payments deserve particular attention. A programmable transaction would allow: automatic execution when a condition is verified (for example: 'pay CHF 50 when you receive delivery confirmation') — reducing fraud risk in online sales; fairer access to limited resources, with concert or event tickets sold fairly through transparent algorithms rather than through manual 'click race', guaranteeing equal opportunities for all; automation of public payments with payments of municipal taxes, concession fees and cantonal taxes that could be executed in a transparent and verifiable way, reducing administrative times that are still partially manual or paper-based today.

So far the project is limited to a controlled protected environment. No public decision has been made on commercial launch to the general public; technical aspects (scalability, latency), operational aspects (compatibility with existing systems) and regulatory aspects (SNB regulations, FINMA, data protection) will first need to be clarified with the intervention of federal and cantonal authorities.

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Key points

When will the digital franc arrive on the Swiss market?

The date of a potential commercial launch remains uncertain. Testing continues until the end of 2026. Once the experimental phase is completed, federal authorities, the SNB, and participants will need to: resolve remaining technical issues (blockchain scalability, transaction latency, security protocols); define the regulatory and normative framework (how the CHFD integrates with Swiss laws on currency, anti-money laundering, data protection, and financial stability); assess the impact on national monetary policy and the stability of the Swiss financial system; verify compatibility with existing payment and settlement systems (SIC, SWIFT, debit/credit cards, banking applications).

Only then will the Federal Council, Parliament, or regulatory authorities formally decide whether the CHFD will be available for Swiss companies and the general public.

What to expect until the end of 2026?

Until the end of 2026, developments will mainly concern the financial sector and regulatory authorities. Swiss citizens will not be able to use the CHFD during the test — it is reserved for the 9 participating companies in a protected environment — but they will be able to follow the progress through official statements from the SNB, FINMA, national economic media, and participating banks.

Switzerland's positioning in global monetary innovation

The digital franc experiment positions Switzerland at the forefront of global monetary innovation. Countries like Sweden (with the e-krona), the Eurozone (with the digital euro), and China (with the digital yuan) are testing or preparing central bank digital currencies. Switzerland, with its reputed stable, neutral, and technologically advanced financial system, is not falling behind in this global transformation.

The outcome of this experiment could significantly influence Switzerland's monetary, payment, and financial innovation strategies in the coming years. If the CHFD receives approval from the authorities, it could represent a structural change in the way Swiss citizens, companies, and public administrations pay, transfer money, and interact with the national financial system.

To stay updated on the developments of the digital franc and how this could affect your payment tools and personal savings management, monitor official statements from the SNB and FINMA. Discover how to best manage your investments and financial planning with our financial calculator.

Source: tio.ch