The Society for Worldwide Interbank Financial Telecommunication (SWIFT) conducted an 8-month trial of different technologies and central bank digital currencies (CBDC).
He determined that these monetary products could participate in the global financial ecosystem and help cross-border payments.
The CBDC experiment
Earlier this year, SWIFT launched a program that aimed to link different CBDC systems and thereby ease the difficulty of cross-border settlements. At the time, chief innovation officer Thomas Zschach claimed that these products had been a “blind spot” and, used together, could enable “frictionless” transactions between different countries.
A recent press release revealed that the SWIFT trial has ended, proving that CBDCs are capable of facilitating international and fiat-covered payments if necessary.
It is worth noting that major players in the financial world, such as the central banks of France and Germany, HSBC, Standard Chartered and UBS, also participated in the experiment. SWIFT determined that the new CBDC solution can help more than 200 nations and territories worldwide. 14 central and commercial banks have already incorporated it into their infrastructure.
“Digital coins and tokens have huge potential to shape the way we all pay and invest in the future. But this potential can only be unleashed if the different approaches being explored have the ability to connect and work together.
We see inclusion and interoperability as central pillars of the financial ecosystem, and our innovation is an important step in unlocking the potential of the digital future.” – said Zschach.
Used by more than 11,000 institutions and 4 billion accounts in 200 countries, SWIFT is by far the largest financial messaging system. Several months ago, it cut off Russia’s ability to liquidate assets and transfer funds to its network due to the military conflict the country started in Ukraine.
SWIFT Blockchain Experiment
Last month, the Belgium-based entity partnered with fintech company Symbiont Inc. to test blockchain technology use cases. Leading monetary institutions such as Citigroup, Vanguard and Northern Trust also participated in the project.
Zschach raised the hope that the technology underlying cryptography could help SWIFT “harmonize data from multiple sources of a corporate action event.”
Featured image courtesy of JapanTimes
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off fees on Binance Futures in your first month (terms).
PrimeXBT Special Offer – Use this link to sign up and enter code POTATO50 to receive up to $7,000 in your deposits.
