The SWIFT platform is used by at least 11,000 institutions, with 4 billion accounts in 200 countries. It is considered the largest financial messaging system in the world. A few months ago, she intervened to support Ukraine in the conflict between it and Russia. Indeed, SWIFT had decided to prevent Russia from liquidating assets and transferring funds through its network. At the same time, the platform launched a program to evaluate the possibility of linking different CBDC systems. Discover the findings of SWIFT’s CBDC experiment.
The Benefits of a Global CBDC Network
Launched at the beginning of the year, SWIFT’s CBDC experiment has just come to an end, after lasting eight months. It focused on different types of technologies, including CBDCs. In particular, it should make it possible to find a way to mitigate the difficulty associated with setting up cross-border operations. According to the program findings from the Society for Worldwide Interbank Financial Telecommunication, CBDCs could facilitate cross-border transactions. These monetary products would be of great use to the global financial network.
Moreover, the news solution SWIFT’s CBDC is expected to serve over 200 nations and territories worldwide. She has already been adopted by 14 central and commercial banks. According to Thomas Zschach, Chief Innovation Officer of SWIFT, “digital currencies and tokens have enormous potential to shape how we will all pay and invest in the future“. “But this potential can only be unleashed if the different approaches that are explored have the ability to connect and work together.“, he underlined.
For Zschach, the new crypto CBDC solution is “a major step towards unlocking the potential of the digital future“. That said, it appears that SWIFT considers inclusiveness and interoperability to be the foundations of the financial ecosystem.
Several major players in the financial sector participated in experience CBDC crypto from SWIFT. These include, among others, the central banks of France and Germany as well as the HSBC banking group. Standard Chartered and financial services company UBS also participated in the program.
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