SWIFT and CBDC, a step forward or preparing for cryptocurrency bans?
SWIFT has developed a global Central Bank Digital Currency Network (CBDC) using various technologies and assets. And it has tested a payment solution.
French and German central banks and financial universities took part in the study.
The study was conducted over a period of 8 months. The testing was aimed at exploring variations using digital currency internationally, as well as converting assets into fiat currency.
Various underlying CBDC technologies, such as Blockchain, were tested during the experiment.
The authors of the project noted that the use of different technologies and approaches by different countries could be an obstacle to the rapid global adoption of this type of digital asset.
Separate tests were also conducted with some financial market participants using tokenised assets.SWIFT is an international interbank system for transmitting information and making payments.
SWIFT is currently present in 200 countries. It connects around 11,000 banks and funds and processes more than 5 billion financial messages annually, with more than 40 million messages sent via Swift every day.
Around 90% of central banks around the world are applying, testing, and enabling the implementation of digital currency. At the end of September, SWIFT and Chainlink teamed up to develop the new platform and became partners.
As part of the joint work, the partners plan to develop a platform concept that will allow all blockchains to be connected into a single network linking traditional finance and digital assets. This will allow SWIFT to manage token transfers, allowing the interbank network to support all blockchain environments by linking them together. It will also accelerate the integration of DLT technologies into traditional finance.
"This experiment will be followed by more advanced trials starting in 2023, according to SWIFT's head of innovation Nick Kerigan."
Not everyone looks at these initiatives with great enthusiasm, some experts express a different opinion.
"They made a beta test on crypto, got people used to using cryptocurrency, now it will be possible to smoothly ban crypto and switch everyone to digital." @Advisor_B&M