Society for Worldwide Interbank Financial Telecommunications or SWIFT is a well-known banking messaging platform. The company just spent 12 weeks testing its CBDC project. On March 9, SWIFT published a press release presenting the results of the tests carried out.
CBDCs can facilitate cross-border payments, according to SWIFT tests
The SWIFT network started testing the integration of CBDCs in 2022. Today, the platform can boast of having successfully completed its tests. Indeed, it announced that it had obtained positive results for the first phase of tests for its project. It should be noted that the latter aims to link different central bank digital currencies. Now, SWIFT announces that it is preparing for the next phase of testing the project.
“Overall, the pilot test results showed that SWIFT’s experimental interconnect solution can meet the needs of central and commercial banks for CBDC interoperability. Thus, they ensure that one can successfully use CBDCs in cross-border payments,” has explained the banking messaging platform.
You must know that more than 18 financial institutions from all over the world have been approached during the testing period. These include the Monetary Authority of Singapore and the Royal Bank of Canada. Institutions such as Société Générale, the Deutsche Bundesbank and the Banque de France also took part in the study.
More central banks will turn to CBDCs
SWIFT cited a study by the OMFIF Digital Monetary Institute in its statement. According to the survey, 24% of central banks will seek to deploy a CBDC in the next two years. It appears that currently more than 110 central banks worldwide are studying the use cases of CBDCs.
Lewis Sun, global head of domestic and emerging payments at HSBC, issued a statement on the matter. “Interoperability is key to realizing the potential of CBDCs for real-time cross-border payments. If interest in CBDCs is growing, so is the risk of fragmentation“, he said.
SWIFT intends to launch the second test phase of its CBDC project in the coming days. He said he wanted to develop a “CBDC interconnect solution in a beta version for payments with improved atomicity“. With all of its projects, the platform is seen as an example of how blockchain is revolutionizing the payments industry.
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