- Inter-bank messaging system SWIFT is set to go ahead with the second phase of CBDC testing.
- The decision was made after positive results in a test run that linked CBDCs from different central banks.
- The 12-week test run saw participation from several banks including Banque de France and BNP Paribas.
- 24% of the world’s central banks are expected to go live with a CBDC in the next 1-2 years.
The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is set to go ahead with the second phase of its CBDC project. The interbank messaging system’s decision to move to the next phase comes after a successful test run of CBDCs from different central banks around the world.
SWIFT: 24% of central banks will be ready to launch CBDC within the next 2 years
According to a press release by the interbank messaging platform, the 12-week long CBDC pilot test found that there was “clear potential and value” in the API-based CBDC connector. This was essentially an experimental solution to link CBDCs from various central banks. The test run saw participation from central banks and private financial institutions from around the world.
The participants included Banque de France, the Deutsche Bundesbank, the Monetary Authority of Singapore, BNP Paribas, HSBC, Intesa Sanpaolo, NatWest, Royal Bank of Canada, SMBC, Société Générale, Standard Chartered, and UBS. A recent survey by the OMFIF Digital Monetary Institute found that 24% of central banks will be ready to go live with a digital currency in the next 1-2 years.
“Our participation in this Swift CBDC sandbox allowed us to concretely envision what CBDC and fiat currency interconnection solutions could be and the challenges they bring, while taking advantage of both the existing Swift infrastructure well known for its security and its robustness and the opportunities Swift’s enhanced platform can provide.”
Isabelle Poussigues, Global Head of Cash Clearing Offer at Société Générale
SWIFT used Kaleido, a blockchain and digital assets platform, to simulate more than 4900 transactions in a sandbox using two blockchain networks, namely Quorum and Corda, in addition to a simulated RTGS network. The central banks and financial institutions were able to test transaction flows between the three simulated networks. The results of the sandbox testing found that SWIFT’s experimental interlinking solution can meet the needs of central and commercial banks for CBDCs interoperability.
Source : Ethereum World News