Swiss National Bank's Tschudin: large stablecoins could disrupt monetary policy
In brief
- Petra Tschudin, SNB Governing Board member, warned large stablecoins could interfere with monetary policy transmission.
- Stablecoins sit outside the two-tier financial system that carries rate changes, Tschudin said.
- SNB's July 2026 report flagged disintermediation and run risk as the main dangers.
- Swiss franc stablecoins had a market cap under $50 million as of mid-2026.
- Switzerland is creating a 'payment instrument institution' license for fiat-backed stablecoin issuers.
Where stablecoins break the chain
When a central bank changes its policy rate, it counts on that move rippling outward through the economy. That chain runs through what's known as the two-tier financial system. Tschudin argued that stablecoins operate outside this structure, and that's where her concern starts.
So what happens if people move their money? If deposits drift from commercial banks into stablecoins, the SNB's tools for steering borrowing costs could become less effective, according to Crypto Briefing's account of the remarks. In Tschudin's framing, the end result is that the SNB's influence over borrowing costs could be undermined. She said regulatory measures are crucial so the central bank can keep fulfilling its mandate.
She didn't dismiss the technology outright.
Tschudin acknowledged that stablecoins can modernize payments, including by lowering the cost of international transfers.
What the July report flagged
The warning isn't new. The SNB flagged stablecoin risks in its July 2026 financial stability report, which pointed to two main dangers, as described by Crypto Briefing. The first was disintermediation (money bypassing banks). The second was run risk, where a stablecoin backed by inadequate reserves faces a wave of redemptions it can't meet.
Scale is the caveat here. The market for Swiss franc stablecoins remained small as of mid-2026, with a market cap under $50 million, and given that size the SNB judged domestic risks to be manageable for now.
Licensing and Project Helvetia III
Switzerland is creating a new license category called a "payment instrument institution" for issuers of fiat-backed stablecoins, Crypto Briefing reported. The license is part of amendments to the Financial Institutions Act.
On the central bank side, the SNB is experimenting through Project Helvetia III with a wholesale central bank digital currency (wCBDC) for use between financial institutions. That project has been extended until at least 2028.
Frequently asked questions
Why does the SNB think stablecoins could affect monetary policy?
Monetary policy relies on policy rate changes rippling outward through the two-tier financial system. SNB board member Petra Tschudin argued that stablecoins operate outside that structure. If deposits move from commercial banks into stablecoins, the SNB's tools for steering borrowing costs could become less effective, according to Crypto Briefing.
What risks did the SNB's July 2026 financial stability report identify?
The report identified two main dangers. The first was disintermediation, meaning money bypassing banks. The second was run risk, in which a stablecoin backed by inadequate reserves could face redemptions it cannot meet.
How big is the Swiss franc stablecoin market?
As of mid-2026, the Swiss franc stablecoin market remained small, with a market cap under $50 million. Given that size, the SNB judged domestic stablecoin risks to be manageable for the time being.
How is Switzerland regulating stablecoin issuers?
Switzerland is creating a new 'payment instrument institution' license category for issuers of fiat-backed stablecoins, according to Crypto Briefing. The license is part of amendments to the Financial Institutions Act.
