SWIFT prepares global platform for bitcoin alternatives

[DrBeer]

According to public sources: Global bank messaging network SWIFT plans to create a new platform in the next one to two years to connect the wave of central bank digital currencies currently being developed to the existing financial system, Reuters writes.

"We are looking at a roadmap to make a product (launch as a product) within the next 12 to 24 months. We are moving from the experimental stage to what will become a reality. It's moving from the experimental stage to what is becoming a reality," SWIFT's head of innovation Nick Kerrigan said.

It is noted that this move will be one of the most significant for the CBDC (digital currencies issued by a particular country's central bank) ecosystem, given SWIFT's key role in the global banking system. However, it is likely to be finalized before the first major projects are launched.


Your opinion - how could this affect the global banking system ? In your opinion - is it recognition of cryptocurrencies or something else ?

[DrBeer]

More information:

SWIFT's Head of Innovation pointed out that the latest study, which lasted 6 months and involved a group of 38 central banks, commercial banks and settlement platforms, was one of the largest global collaborations to date on CBDCs and "tokenized" assets.

It focused on enabling CBDCs from different countries to be shared across countries, even if they are built on different underlying technologies or "protocols", thus reducing the risks of fragmentation of payment systems.

The study also found that they can be used in very complex trade or currency payments and could potentially be automated to make these processes faster and cheaper.

The results, which also proved that banks could use existing infrastructure, were deemed a success by all participants and gave SWIFT time to work, Kerigan said.

Countries such as the Bahamas, Nigeria and Jamaica already have working CBDCs. China has made significant progress in testing the e-yuan in real life. The European Central Bank is also working on the digital euro, and the Bank for International Settlements, the world's premier group of central banks, is conducting numerous cross-border trials.

Benefits of SWIFT
SWIFT is an international interbank system for transmitting information and making payments. Its main advantage is that the existing network is already in use in more than 200 countries and connects more than 11,500 banks and funds that use it to transfer trillions of dollars every day.