2024

Richard

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The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has recently articulated its vision for integrating with a tokenized future, emphasizing the crucial role of a messaging layer within <a rel="noopener noreferrer nofollow" href="https://t.me/coingape/31715">tokenized </a>payment systems. This approach is designed to merge the solid strengths of the messaging services of SWIFT with the creative potential of shared ledger technology.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 CB<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;">DC DAILY: <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f918-1f3fc.png" alt="🤘🏼" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/hashtag/Swift?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Swift</a> promotes the concept of a universal shared ledger. But based on messaging
 I respect Swift, but the future will not look like the past.<a href="https://twitter.com/hashtag/CBDC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#CBDC</a> <a href="https://twitter.com/hashtag/FinTech?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#FinTech</a><a href="https://twitter.com/efipm?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@efipm</a><a href="https://twitter.com/Kiffmeister?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Kiffmeister</a><a href="https://twitter.com/sonjadav?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@sonjadav</a><a href="https://twitter.com/Jonas__Gross?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Jonas__Gross</a><a href="https://twitter.com/conrad_kraft?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@conrad_kraft</a><a href="https://twitter.com/joshualipsky?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@JoshuaLipsky</a><a href="https://t.co/lo2fPfBicK" rel="noopener noreferrer nofollow">https://t.co/lo2fPfBicK</a>
 — Richard Turrin (@richardturrin) <a href="https://twitter.com/richardturrin/status/1771084366711558602?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 22, 2024</a>
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<h2 id="strong-swift-s-stance-on-tokenization-and-shared-ledgers-strong">SWIFT’s Stance on Tokenization and Shared Ledgers</h2>
SWIFT has observed rapid advancements in fintech, particularly in the area of tokenization and the development of shared ledger models. The organization, as a result, recognizes the ability of shared infrastructure to deliver live balance updates to all participants in a shared ledger.
SWIFT, however, also highlights the drawbacks of shared ledgers in processing huge data volumes. This limitation illustrates the need for a messaging layer that is capable of supporting transactions and data-intensive latter-day financial services, including compliance, <a href="https://coingape.com/eu-banking-authority-sets-aml-rules-for-crypto-firms/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">anti-money laundering</a> (AML) measures, and sanctions screening.
<h2 id="role-of-messaging-in-a-unified-ledger">Role of Messaging in a Unified Ledger</h2>
The proposal from SWIFT presents an opportunity to utilize its already-in-place ISO-20022 messaging technology as the foundation of a new type of payment model that merges the best of both centralized and decentralized systems. This model assumes a state machine that can dynamically mirror the transaction and balance statuses within several institutions, that is, possibly built on a <a href="https://coingape.com/internet-computer-icp-demonstrates-first-blockchain-ai-smart-contract/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">blockchain technology</a> or centralized platform such as SWIFT Transaction Manager.
This kind of hybrid approach seeks to enable a smooth switch to the tokenized payment systems while also taking care of the regulatory needs and effective processing of financial transactions.
<h2 id="strong-addressing-the-challenges-of-adoption-strong">Addressing the Challenges of Adoption</h2>
SWIFT recognizes the difficulties and coordination problems with moving to a shared ledger system. The organization argues that the use of the existing components of the financial system, which are already integrated, can eliminate market concentration risks. It outlines a practical approach to the implementation of shared ledgers by improving existing platforms and methods to bring rich, structured data quickly.
This method would enable the significance of secure financial messaging services such as those offered by SWIFT to remain in the communication and execution of transactions in a tokenized world.
By advocating for a place within <a href="https://coingape.com/rwa-tokens-rally-polyx-cfg-propc-ondo-props-skyrocket-over-30/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">tokenized </a>payment systems, SWIFT seeks to merge the gap that exists between traditional banking transactions and the new digital financial infrastructure that is gaining popularity. In their proposal of a model consisting of a messaging layer and shared ledger technology, SWIFT aims to address the industry’s need for an innovative and dependable system.&nbsp;
Read Also: <a href="https://coingape.com/markets/3-lesser-known-dogecoin-killers-to-buy-as-cryptos-cascade-in-march/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">3 Lesser Known Dogecoin ‘Killers’ To Buy As Cryptos Cascade In March</a>
The post <a href="https://coingape.com/swift-advocates-for-a-messaging-layer-in-tokenized-payment-systems/" rel="noopener noreferrer nofollow">SWIFT Advocates for a Messaging Layer in Tokenized Payment Systems</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

SWIFT Advocates for a Messaging Layer in Tokenized Payment Systems

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