SWIFT is developing a platform to integrate central bank digital currencies
The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a core association in global banking, is developing a platform to integrate central bank digital currencies (CBDC) with the traditional financial system. This project responds to the interest of nearly 90% of the world's central banks in adopting their own digital currencies - clearly centralized - in an attempt to modernize payment systems and keep up with cryptocurrencies.
In this sense, SWIFT aims to facilitate interoperability between different central bank digital currencies and the existing financial system. This new platform is scheduled to launch in the next year or two, although the timeline could be adapted based on central bank digital currencies (CBDC) developments in major economies.
Nick Kerrigan, Head of Innovation at SWIFT, shared that the latest testing involved 38 entities, including central and commercial banks, to ensure that CBDCs from different countries work together, regardless of their underlying technologies. The results of this collaboration, which also explored the feasibility of using banks' existing infrastructure, were positively received by participants, providing SWIFT with a time frame to move towards implementation. The successful integration of these digital currencies into the SWIFT network could cement its dominant position in the cross-border payments infrastructure. Let's remember that the organization already connects more than 11,500 banks and financial entities, managing billions of dollars daily in more than 200 countries.
Meanwhile, the integration of central bank digital currencies into the SWIFT network could strengthen its dominance in the international payments system, at a time when countries such as the Bahamas, Nigeria, Jamaica and China (e-yuan) are already experimenting with their own system. Digital currencies. Moreover, with the European Central Bank's efforts to develop a digital euro.
Finally, the interest in asset digitization, including expectations of $16 trillion in asset transfers by 2030, underscores the trend toward digital change in the financial sector.
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