Key Takeaways
- SWIFT plans to launch a platform for CBDC integration within 12-24 months.
- Around 90% of the world's central banks are exploring digital currencies.
- SWIFT's trial showed potential for CBDC interoperability and automation in payments.
Global bank messaging network SWIFT is set to introduce a new platform in the next one to two years.
This platform aims to connect the emerging central bank digital currencies (CBDCs) with the existing financial system.
The initiative is a significant step for the CBDC ecosystem, considering SWIFT’s pivotal role in global banking.
Global interest in CBDCs
About 90% of the world’s central banks are currently exploring digital versions of their currencies.
Some claim they are motivated by the desire not to be left behind by Bitcoin and other digital currencies, while others claim they want to have more strict control over people’s finances.
Collaborative trials and success
SWIFT’s head of innovation, Nick Kerigan, revealed that their latest trial involved a diverse group of 38 central banks, commercial banks, and settlement platforms.
The trial focused on interoperability among different CBDCs, even if they are built on varying technologies.
It also explored the potential for automation in trade and foreign exchange payments to enhance exchange speed and reduce costs.
SWIFT’s global network advantage
SWIFT’s network is already operational in over 200 countries, connecting more than 11,500 banks and financial institutions.
