SWIFT aims to combine CBDC with Traditional Banking

SWIFT, the global banking messaging network, has announced that it will build a new platform. The goal is to connect the growing digital currencies of central banks (CBDC) with the current financial system. This step is an important achievement for the growing CBDC ecosystem, leveraging SWIFT's central position in the banking world.

In the current environment, almost 90% of central banks around the world are considering digital versions of their currencies. Thanks to the growth of Bitcoin (BTC) and other cryptocurrencies, they are striving to lead the race for financial innovation. However, these organizations face technological challenges. The SWIFT project aims to eliminate these obstacles by making different CBDCs compatible, despite differences in underlying technologies.

SWIFT's head of innovation, Nick Kerigan, spoke about the recent trial, which has been going on for six months. 38 organizations participated in the trial, including central banks, commercial banks and settlement platforms. Today it is one of the largest global alliances for CBDC and tokenized assets. He stressed the need to combine the work of various CBDCs in order to reduce the risk of fragmentation of the payment system.

The study revealed the possibilities of CBDC in facilitating complex payments related to trade and foreign exchange. The concept of automation, increasing speed and reducing transaction costs was also considered. Participants confirmed that banks can enable CBDC using their current infrastructure. This gives SWIFT a very clear timetable for moving forward in its integration efforts.

SWIFT, in particular, recognized the rapid pace of financial technology development, especially in the field of tokenization and emerging shared registry models. The organization values the efficiency of the overall infrastructure, which includes real-time balance updates for all registry members. However, SWIFT also recognizes the inability of shared registries to handle large amounts of data.

The solution to these problems that SWIFT recommends is the messaging layer. This level will ensure the requirements for transactions and data intensive use for modern financial services. This includes compliance with anti-money laundering (AML) standards and verification of sanctions. By combining SWIFT's powerful messaging services with the innovative capabilities of distributed ledger technology, the organization aims to create an environment for the smooth integration of CBDC into the existing banking system.

Source: https://xrp-buy.ru/cbdc/swift-stremitsja-obedinit-cbdc-s-tradicionnym-bankingom/