Global bank messaging network SWIFT has disclosed plans for the launch of a new platform within the next 12 to 24 months, aiming to integrate the surge of central bank digital currencies (CBDCs) into the existing financial infrastructure, according to Reuters.
With approximately 90% of central banks worldwide exploring digital currency options, SWIFT’s initiative emerges as a pivotal step in the nascent CBDC ecosystem. Nick Kerigan, SWIFT’s head of innovation, revealed that the recent six-month trial, involving a consortium of 38 central banks, commercial banks, and settlement platforms, marks one of the most extensive global collaborations on CBDCs to date.
The trial’s success underscores the potential for CBDCs to streamline complex trade and foreign exchange transactions while leveraging existing banking infrastructure. Kerigan emphasized that the results have propelled SWIFT towards transitioning from an experimental phase to productization within the specified timeframe.
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Global bank messaging network SWIFT is planning a new platform in the next one to two years to connect the wave of central bank digital currencies now in development to the existing finance system, it has told Reuters.
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Despite the possibility of timeline adjustments due to delays in major economy CBDC launches, SWIFT’s strategic move positions it to sustain its dominance in the interbank communication network. Notably, countries like the Bahamas, Nigeria, and Jamaica have already implemented CBDCs, with China and the European Central Bank advancing in real-life trials.
SWIFT’s existing network, spanning over 200 countries and connecting more than 11,500 banks and funds, presents a formidable advantage in facilitating digital asset payments globally. Kerigan affirmed that SWIFT’s envisioned solution aims for scalability, aligning with forecasts estimating a substantial surge in tokenized assets by 2030.
As the CBDC landscape evolves, SWIFT’s proactive stance signifies a crucial milestone in the integration of digital currencies into the traditional financial framework, promising enhanced efficiency and interoperability on a global scale.
