The Swiss Central Bank and the Bank for International Settlements (BIS) will begin testing the national digital currency (CBDC) before the end of this year. The plans were announced by the BIS head of the innovation hub Benoit Coeure, reports The Block, citing local media.

According to the officials, by the end of 2020, the project should enter the proof-of-concept phase. This will set the stage for continued experimentation with retail-focused CBDCs. The tests will allow studying the relationship with existing payment systems and monitoring legal compliance.

the BIS also plans to work with more central banks, including the Hong Kong Monetary Authority and the Bank of Thailand, to test cross-border usage of digital currencies, said Coeure.

Bank of Switzerland is one of a group of seven central banks in the world that have teamed up with BIS to study CBDC.

Recall that in early October, the group prepared a report, which presents the fundamental principles and key characteristics of national digital currencies.