SWIFT aims to establish a unified platform linking several CBDCs by 2026.
SWIFT has 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. The global financial messaging network is taking this step as approximately 90% of the world’s central banks are exploring digital currency options. This initiative by SWIFT reflects the collective effort to keep up with advancements in cryptocurrencies like Bitcoin, while also grappling with the complexities of technology.
SWIFT’s head of innovation, Nick Kerigan, revealed that the organization recently conducted a six-month trial involving nearly 40 central banks, commercial banks, and settlement platforms. This trial is considered one of the largest global collaborations on CBDCs and tokenized assets to date. In a blog post, SWIFT stated that its connector was able to link multiple asset and cash networks, enabling atomic delivery versus payment across those platforms. The trial engaged central banks from various countries, including Germany, France, and Australia.
SWIFT’s chief innovation officer, Tom Zschach, emphasized the organization’s ambition to address the industry’s fragmentation challenge. He highlighted the significance of this milestone achievement. However, despite SWIFT’s integration efforts, not all countries are rushing to develop their digital currencies. Concerns persist regarding technological and regulatory hurdles. Sweden’s Riksbank, for instance, stressed the need for extensive technical and regulatory development to ensure secure offline payments with e-kronas.
Federal Reserve Chair Jerome Powell also indicated during a recent testimony before the Senate Banking Committee that the Federal Reserve is not yet ready to recommend or adopt a CBDC. He reassured the public that there is no imminent rollout of a central bank digital currency.
