CBDC Pilots Now Being Tested by Three Central Banks, According to SWIFT
Three central banks have launched new pilots for central bank digital currencies (CBDCs), according to an announcement from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
In a new announcement, SWIFT says it has entered a new phase of work on CBDC interoperability, and that a trio of central banks are beta-testing new systems for interlinking CBDCs with 30 financial institutions exploring further use cases.
SWIFT says that the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan have begun integrating the new solution with their own infrastructure for direct testing. The third central bank was left unnamed by SWIFT in the announcement.
Says Tom Zschach, Chief Innovation Officer at SWIFT,
“Our focus is on interoperability – ensuring that new digital currencies can seamlessly coexist with each other and with today’s fiat-based currencies and payment systems. The financial community has already recognised the strong potential of our CBDC innovations for preventing digital islands while securely bridging the payment systems of today and the future. This next phase of testing and exploration will help us further refine the solution to ensure it is as effective as possible, and at scale.”
SWIFT says that since there will be so many different CBDCs, with nearly 130 countries actively exploring the technology, there may be fragmentation issues when they come to fruition in the future. SWIFT says the potential issue makes interoperability solutions a top priority for the organization.
According to SWIFT, its new “connector” tech has already enabled seamless transactions between different blockchain-based CBDC systems that were built on completely different frameworks.
“SWIFT, to counter this fragmentation, has prioritized focus within its innovation agenda on interoperability for digital currencies and tokenized assets to enable them to seamlessly scale if and when they are deployed into the financial ecosystem.
Its specific work on CBDCs began more than 18 months ago and, in the first phase of its experiments and sandbox testing, almost 5,000 transactions were simulated between two different blockchain networks and with existing fiat-based payment systems. Central and commercial bank participants noted that the connector enabled the seamless exchange of CBDCs, even for those built on different platforms.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post CBDC Pilots Now Being Tested by Three Central Banks, According to SWIFT appeared first on Crypto News Australia.
Filed under: Bitcoin - @ September 17, 2023 7:03 pm