Even as central banks of various economies explore CBDCs, SWIFT is advancing cross-border payments involving digital currencies. While most of the central bank digital currency (CBDCs) focus on achieving digitalization of fiat currencies, SWIFT’s latest move aims at cross-border payments.
SWIFT is the global standard for payment and securities trade transactions. The new project, along with Capgemini, focuses on interlinking between various CBDCs being developed around the world.
Interlinking Major CBDCs
Thomas Zschach, chief innovation officer, SWIFT, said,
“Today, the global CBDC ecosystem risks becoming fragmented with numerous central banks developing their own digital currencies based on different technologies, standards and protocols.”
In this regard, the SWIFT payments system collaborated with Capgemini for conducting new experiments to test the interlinking of domestic CBDCs, it announced.
