SWIFT aims to establish a unified platform for connecting multiple CBDCs by 2026.
SWIFT has announced its plans to launch a new platform in the next one to two years that will connect central bank digital currencies (CBDCs) to the existing finance system. This move is aimed at boosting the CBDC ecosystem and keeping up with advancements in the crypto space, such as Bitcoin.
According to a spokesperson for SWIFT, approximately 90% of the world’s central banks are exploring digital currency options. The organization’s latest trial, which lasted six months and involved nearly 40 central banks, commercial banks, and settlement platforms, was one of the largest global collaborations on CBDCs and tokenized assets to date. The trial successfully interlinked multiple asset and cash networks, enabling atomic delivery versus payment across those platforms. Central banks from countries like Germany, France, and Australia participated in the pilot.
SWIFT’s chief innovation officer, Tom Zschach, highlighted the organization’s ambition to address the industry’s fragmentation challenge and emphasized the significance of this milestone achievement.
However, not all countries are rushing to develop their digital currencies. Concerns regarding technological and regulatory hurdles persist. Sweden’s Riksbank, for example, stressed the need for extensive technical and regulatory development to ensure secure offline payments with e-kronas.
Federal Reserve Chair Jerome Powell also made it clear in a recent testimony before the Senate Banking Committee that the Federal Reserve is not yet ready to recommend or adopt a CBDC. He assured the public that there are no immediate plans to roll out a central bank digital currency.
In conclusion, SWIFT’s upcoming platform aims to integrate CBDCs with the existing financial system, reflecting the global interest in digital currencies. While some countries are cautious due to technological and regulatory challenges, SWIFT’s initiative marks a significant step towards advancing the CBDC ecosystem.
