Bank AI

Global bank messaging network SWIFT has revealed plans for a new platform, expected to launch within the next one to two years, to bridge the emerging wave of central bank digital currencies (CBDCs) with the existing financial system. 
This initiative, potentially one of the most significant for the booming CBDC ecosystem, given SWIFT’s pivotal role in global banking, is anticipated to align closely with the timing of major CBDC launches. 
With approximately 90% of the world’s central banks currently exploring digital currency options, there’s a collective urgency to avoid lagging behind the rise of cryptocurrencies like bitcoin while grappling with intricate technological challenges. 
Nick Kerigan, SWIFT’s head of innovation, disclosed that the organization’s recent six-month trial, involving a consortium of 38 central banks, commercial banks, and settlement platforms, marked one of the largest global collaborations on CBDCs and tokenized assets to date. 
The trial focused on ensuring interoperability among different countries’ CBDCs, irrespective of the underlying technologies, thereby mitigating payment system fragmentation risks. 
Results demonstrated the potential for CBDCs to facilitate complex trade and foreign exchange transactions while offering possibilities for automation to enhance speed and reduce costs, as reported by Reuters. 
Kerigan emphasized that the trial’s success has propelled SWIFT towards productizing the platform within the next 12 to 24 months, marking a transition from experimental to practical implementation. 
While the timeline remains subject to adjustments based on CBDC launch schedules, SWIFT aims to leverage its incumbent dominance in the global bank-to-bank network to facilitate seamless integration of CBDCs. 
Notably, countries such as the Bahamas, Nigeria, and Jamaica have already launched CBDCs, with China and the European Central Bank also advancing in their digital currency initiatives. 
SWIFT’s extensive existing network, spanning over 200 countries and connecting more than 11,500 banks and funds, positions it as a scalable solution for CBDC integration. 
The envisioned platform aims to streamline digital asset payments, providing a single global connection point for banks, thus eliminating the need for individualized connections with each counterparty. 
As the financial landscape evolves towards CBDCs and tokenization, SWIFT’s strategic move underscores its commitment to facilitating seamless integration and scalability within the evolving digital asset ecosystem. 
The post <a rel="nofollow" href="https://www.unlock-bc.com/120653/global-bank-messaging-network-swifts-new-cbdc-platform-on-the-horizon/">Global Bank Messaging Network SWIFT’s New CBDC Platform Is on the Horizon</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Global Bank Messaging Network SWIFT’s New CBDC Platform Is on the Horizon

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