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<div class="intro-text"> 
 The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has officially <a style="color: #0000ff;" href="https://www.swift.com/news-events/press-releases/swift-advances-cbdc-innovation-interlinking-solution-begins-beta-testing" rel="noopener noreferrer nofollow">begun</a> the beta testing phase for its <a href="https://defi-planet.com/2022/03/cbdcs-explained/" rel="noopener noreferrer nofollow">central bank digital currency (CBDC)</a> interlinking solution. 
</div> 
The cross-border financial settlements provider stated that three central banks, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan, are actively testing the solution by directly integrating it into their existing infrastructure. 
SWIFT claims that its interlinking solution aims to address potential “fragmentation” that might arise as numerous countries worldwide develop their CBDCs for commercial use.&nbsp; 
According to the provider, 19 G20 countries are currently in advanced stages of <a style="color: #0000ff;" href="https://defi-planet.com/2022/01/the-implications-of-cbdcs-for-the-banking-industry/" rel="noopener noreferrer nofollow">CBDC development</a>, with a primary focus on domestic usage rather than cross-border transactions. SWIFT’s solution will provide a seamless transition for these currencies when they enter the global financial ecosystem. 
Tom Zschach, SWIFT’s Chief Innovation Officer, emphasized their focus on interoperability, <a style="color: #0000ff;" href="https://www.swift.com/news-events/press-releases/swift-advances-cbdc-innovation-interlinking-solution-begins-beta-testing#_ftn1" rel="noopener noreferrer nofollow">stating;</a> 
<blockquote class="pullquote align-center"> 
 “Our focus is on interoperability – ensuring that new digital currencies can seamlessly coexist with each other and with today’s fiat-based currencies and payment systems.” 
</blockquote> 
This interlinking solution was developed based on insights gathered during the <a style="color: #0000ff;" href="https://www.ledgerinsights.com/swift-blockchain-interoperability-trial-bnp-paribas-citi-dtcc/" rel="noopener noreferrer nofollow">first CBDC sandbox</a>, which concluded earlier this year. During this sandbox phase, nearly 5,000 simulated transactions took place between two blockchain systems (Quorum and Corda) and existing Real-Time Gross Settlement (RTGS) fiat systems. 
SWIFT also revealed that it has initiated the second phase of sandbox testing, with more than 30 financial institutions, including commercial banks and central banks, exploring additional use cases. These include trigger-based payments for digital trade platforms, foreign exchange models, delivery and payment, and liquidity-saving mechanisms. Notable participants in this second phase include the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, and the Bank of Thailand. 
Zschach also highlighted the importance of this second phase, <a style="color: #0000ff;" href="https://www.swift.com/news-events/press-releases/swift-advances-cbdc-innovation-interlinking-solution-begins-beta-testing#_ftn1" rel="noopener noreferrer nofollow">stating;</a> 
<blockquote class="pullquote align-center"> 
 “This next phase of testing and exploration will help us further refine the solution to ensure it is as effective as possible, and at scale.” 
</blockquote> 
&nbsp; 
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The post <a rel="noopener noreferrer nofollow" href="https://defi-planet.com/2023/09/swifts-cbdc-interoperability-solution-enters-crucial-beta-testing-stage/">SWIFT’s CBDC Interoperability Solution Enters Crucial Beta Testing Stage</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://defi-planet.com">DeFi Planet</a>.

SWIFT’s CBDC Interoperability Solution Enters Crucial Beta Testing Stage

DeFi Planet

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