Swiss National Bank Warns Stablecoins Could Undermine Monetary Policy

Swiss National Bank Governing Board member Petra Tschudin warned on September 30, 2026, that the growth of large stablecoins could interfere with the central bank's ability to influence the economy. Speaking in Zurich, Tschudin argued that stablecoins operating outside the traditional two-tier financial system could disrupt the transmission of monetary policy.

The central bank's current framework relies on commercial banks to pass on policy rate changes to households and businesses. Tschudin expressed concern that if deposits shift away from commercial banks and into stablecoins, the mechanism the SNB uses to steer borrowing costs could become less effective.

While Tschudin acknowledged that stablecoin technology could modernize payments and reduce costs for international transfers, she emphasized the need for regulatory guardrails. She stated that such measures are essential for the central bank to continue fulfilling its mandate.

The SNB previously highlighted these risks in a July 2026 financial stability report, which identified potential dangers including disintermediation and run risk. However, the report noted that the market for Swiss franc stablecoins remained small, with a market cap under $50 million as of mid-2026, leading the bank to judge domestic risks as manageable.

Switzerland is currently developing a new license category for fiat-backed stablecoin issuers under the Financial Institutions Act. Simultaneously, the SNB is continuing its work on Project Helvetia III, an experiment involving a wholesale central bank digital currency, which has been extended until at least 2028.