SWIFT Acknowledges Potential and Value of Its CBDC Interconnect Project

03/09/2023 13:36 • Metaverse Matters • 152 views

It is reported that SWIFT said in a statement on Thursday that a project operated by the company to interconnect the central bank digital currency (CBDC) has “obvious potential and value”. The project includes banks such as BNP, Intesa Sanpaolo (ISP) and Standard Chartered Bank (STAN), as well as the central banks of France and Singapore. Now it will enter the second stage and may study other applications such as trade financing and securities settlement. SWIFT said that it would continue to carry out beta testing in the next few months and start the second phase of research on applications such as conditional payment.

SWIFT will launch the second phase pilot after finding “value” in CBDC

Analysis based on this information:

The interconnect project operated by SWIFT, aimed at connecting central bank digital currency (CBDC), has been acknowledged for its potential and value by the company itself. In a statement released on Thursday, SWIFT confirmed that the project has entered its second stage, which could involve the study of other applications related to trade financing and securities settlement. Participants of the project include BNP, Intesa Sanpaolo, Standard Chartered Bank, the central bank of France, and the central bank of Singapore.

This move by SWIFT towards creating an interconnected network of CBDCs could be a game-changer in the financial world, enabling countries to transact with each other’s digital currencies quickly and efficiently. This interconnectivity will lead to lower transaction costs, reduce settlement times and support cross-border payments. In the past, currencies had to be exchanged at multiple institutions, leading to expensive conversion fees, a lengthy wait time and other inefficiencies. With the proposed system, this will not be necessary, resulting in more streamlined transactions and improved overall efficiency.

It is noteworthy that the project is not limited to researching CBDCs alone, but it also aims at exploring other possible applications, such as securities settlement and conditional payments. This broadening of scope speaks to the versatility and potential of CBDCs, which could open up avenues for greater financial inclusion across the globe.

The second stage of the project will involve beta testing over the next few months, followed by research into other applications such as conditional payments. If successful, this can pave the way for increased adoption of CBDCs and create a more inclusive and efficient financial system.

In conclusion, SWIFT’s interconnect project has the potential to revolutionize the way central banks and financial institutions interact with digital currencies. The acknowledgment of its value and potential by SWIFT is a positive step forward in the development of CBDCs and its applications. More importantly, it marks a significant contribution towards creating a more connected and inclusive financial ecosystem.

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SWIFT Acknowledges Potential and Value of Its CBDC Interconnect Project

SWIFT will launch the second phase pilot after finding “value” in CBDC

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