- Power-With-In Newsletter
- Posts
- Swift's CBDC Connector Takes a Step Closer to Reality
Swift's CBDC Connector Takes a Step Closer to Reality
Power With-In
September 15, 2023
Swift, the globally recognized financial messaging network, has revealed it is currently in the beta testing stage for its innovative Central Bank Digital Currency (CBDC) compatibility platform.
 |  |
The interoperability messaging network is a crucial step in cross-border payments using CBDCs. Three central banks, including the Hong Kong Monetary Authority and the Central Bank of Kazakhstan, are testing this technology. Swift's Chief Innovation Officer, Tom Zschach, expressed the organization's commitment to fostering interoperability in the digital currency landscape. The primary objective is to facilitate coexistence between digital currencies and traditional fiat-based currencies and payment systems. Swift's CBDC infrastructure solution was tested in a controlled environment known as a sandbox. 18 global financial institutions participated in the testing period, processing a total of 4,736 transactions. This achievement represents a significant milestone in advancing CBDC technology. Swift's commitment to enhancing interoperability and facilitating the integration of CBDCs indicates its dedication to keeping pace with the evolving landscape of digital finance.
Swift, a global payments messaging network, has developed a CBDC connector to enable the seamless exchange of CBDCs, even for those built on different platforms. The connector has been tested with almost 5,000 simulated transactions between two different blockchain networks and with existing fiat-based payment systems. Central and commercial bank participants noted that the connector was successful in enabling the cross-border transfer of CBDCs.
The Swift CBDC connector is designed to address the fragmentation that could arise from the development of CBDCs by different countries. The connector will allow CBDCs to be interoperable, which will facilitate cross-border payments and trade. The connector is still in the testing phase, but it has the potential to be a valuable tool for the development and adoption of CBDCs.
Here are some additional details about the Swift CBDC connector:
The connector is based on Swift's gpi platform, which is a secure and reliable messaging network used by over 11,000 financial institutions around the world.
The connector is designed to be flexible and scalable, so that it can be used to support a variety of CBDC use cases.
The connector is open source, so that it can be used by any central bank or financial institution.
The Swift CBDC connector is a significant development in the field of CBDCs. The connector has the potential to make CBDCs more interoperable and accessible, which could lead to increased adoption of CBDCs around the world.
