- A beta version of the project will be developed in the coming months
- More than 110 countries are exploring the possibility of launching a CBDC
- SWIFT project could lead to cheaper and safer international transfers
SWIFT strives create a system that will connect the digital currencies of different countries. The statement says:
“Ensuring compatibility along with innovation is one of the key areas of our company. It is also one of the main tasks of the financial industry as digital currencies develop. Currently, more than 110 countries are exploring the possibility of creating a CBDC, and almost a quarter of them expect to launch within the next one to two years.
SWIFT Chief Innovation Officer Tom Zshach said:
“We work closely with the international financial community. We want to solve the problem of using digital currencies within one country and implement them abroad. Last year, we announced that we had successfully developed a solution to enable CBDCs to migrate from DLT systems to fiat systems using existing financial infrastructure.”
The seriousness of SWIFT’s intentions is evidenced by the number of partners working on the project. The development and testing of the solution was a collaborative effort among many organizations. Among them: Bank of France, Deutsche Bundesbank, Monetary Authority of Singapore, BNP Paribas, HSBC, Intesa Sanpaolo, NatWest, Royal Bank of Canada, SMBC, Société Générale, Standard Chartered and UBS. Another 4 central banks participated as observers.
During the 12-week test, participants processed a total of 4,736 transactions between the Quorum and Corda blockchain networks, and between Corda and fiat currency. In the near future, a beta version of the program will be developed, which will be available for testing to central banks.
Some countries such as Nigeria and the Bahamas have already released digital versions of their national currencies. And UK and EU jurisdictions are looking into whether to do so.