The Swiss National Bank (SNB) announced an extension of its wholesale central bank digital currency (CBDC) pilot program, known as the “digital franc.”

The initiative, which aims to incorporate more financial institutions over time, will assess the digital franc’s performance and security in real-world scenarios.

SNB governing board member Antoine Martin disclosed that the initial pilot date, set for June 30, has been postponed by approximately two years, pushing the potential launch to 2026.

This extension will allow for a more comprehensive evaluation of the digital franc’s capabilities.

Unlike retail CBDC pilots in other countries such as China, the Swiss CBDC is focused on wholesale applications intended for use between financial institutions.

This phase of the pilot involves six commercial banks, including UBS Group AG and Commerzbank AG, in collaboration with the Swiss stock exchange provider SIX.

Martin emphasized the wholesale CBDC’s potential for a broader range of financial transactions and stressed the importance of increasing transaction volume and attracting new financial market participants for the project’s success.

However, he noted that this extension does not guarantee a permanent introduction of the wholesale CBDC or digital SNB Bills.

Despite the uncertainties, the digital franc has shown practical utility in testing. The SNB has issued blockchain-based digital currency for institutional use, enabling financial institutions to conduct transactions with the central bank.

Additionally, the digital franc has facilitated the settlement of at least five bond issuances on SIX’s digital exchange in Zurich, including a significant $226 million settlement for a World Bank bond earlier this month.