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CBDC’s Great Potential in Cross-Border Transactions

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According to reports, Yang Wen, president of Swift China, said in an interview that CBDC was regarded as the next generation currency with great potential in c…

CBDCs Great Potential in Cross-Border Transactions

According to reports, Yang Wen, president of Swift China, said in an interview that CBDC was regarded as the next generation currency with great potential in cross-border transactions. CBDC can play an important role in the field of cross-border payment, but if it is to give full play to its potential, the interaction between different CBDC systems and existing non-CBDC payment infrastructure is crucial. To give full play to the potential of CBDC in cross-border transactions, the collaboration of the global financial community is another key element. The market needs an environment that allows all parties of the financial community to participate, test and cooperate with customers in an open and innovative way. To this end, Swift built a CBDC sandbox and visual interface. It is reported that 18 institutions around the world, including central banks, market infrastructure and commercial banks, are using the sandbox to evaluate potential use cases and broader CBDC interactivity.

President of SWIFT China: CBDC can play an important role in cross-border payment

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The world is moving towards the digitalization of currencies, and CBDCs are emerging as the next generation currency with great potential in cross-border transactions. Yang Wen, the president of Swift China, believes that CBDCs can play an essential role in this field. However, the success of CBDCs in cross-border transactions depends on the interaction between different CBDC systems and existing non-CBDC payment infrastructure. Furthermore, collaboration among the global financial community is also a crucial element in utilizing the potential of CBDCs in cross-border transactions.

In order to give full play to the potential of CBDCs, the financial community requires an environment that allows all parties to participate, test, and cooperate with customers in an open and innovative way. To this end, Swift has built a CBDC sandbox and visual interface that is being used by 18 institutions around the world. These institutions include central banks, market infrastructure, and commercial banks, who are evaluating potential use cases and broader CBDC interactivity.

The benefits of CBDCs in cross-border transactions are manifold. CBDCs can provide faster and cheaper transactions, eliminating the need for intermediaries and reducing the risk of fraud and errors. CBDCs can also ensure transparency, traceability, and accountability, thus improving the efficiency and security of cross-border transactions. However, the success of CBDCs in this field depends on various factors, such as interoperability, scalability, efficiency, and security.

The collaboration among the global financial community is also crucial for the success of CBDCs in cross-border transactions. The financial community needs to work together to set standards, protocols, and regulations that ensure the interoperability, security, and efficiency of CBDCs across borders. The financial community also needs to address the concerns around data privacy, sovereignty, and cybersecurity that arise from the use of CBDCs.

In conclusion, CBDCs have great potential in cross-border transactions, but their success depends on various factors, such as interoperability, scalability, efficiency, and security. Collaboration among the global financial community is also crucial in utilizing the potential of CBDCs in cross-border transactions. Swift’s CBDC sandbox and visual interface are examples of how the financial community is working together to evaluate the use cases and broader CBDC interactivity, and set standards, protocols, and regulations for the success of CBDCs in cross-border transactions.

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