SWIFT has successfully tested national cryptocurrencies
The experiment involved the French and German central banks, as well as major financial institutions, including HSBC, Standard Chartered and UBS
05.10.2022 - 14:35
431
2 min
0
What’s new? The financial messaging system SWIFT designed a global network of central bank digital currencies (CBDC) using a variety of technologies and assets. The study lasted eight months, Reuters writes. It involved the French and German central banks, as well as major financial institutions such as HSBC, Standard Chartered and UBS. Testing was aimed at examining options for the use of CBDC at the international level and the conversion of assets in fiat currency.
What else is known about the trial? According to Reuters, about 90% of central banks around the world are currently using, testing or looking into implementing CBDC. Most of them are facing technological challenges.
SWIFT Head of Innovation Nick Kerigan compared the trial to a bicycle wheel, with 14 central and commercial banks connected by spokes to the main hub. He said that this experiment will be followed by more advanced testing that will begin in 2023.
The idea behind the project is to create a single global communication network between banks. According to Kerigan, SWIFT believes that the smaller number of communication channels required will reduce the number of failures in the transfer of information and increase the efficiency of banks and benefits for users.
The trial tested various basic CBDC technologies, such as blockchain. The authors of the project emphasized that the use of various technologies and approaches by different countries could be a hurdle for the rapid global adoption of this type of digital assets.
In addition, separate tests using tokenized assets were conducted jointly by the financial conglomerate Citi, the clearing company Clearstream and the financial holding company Northern Trust.
SWIFT is currently represented in 200 countries, unites more than 11 500 banks and funds and processes more than 5 billion financial messages annually.
In September, SWIFT and Chainlink, a decentralized oracle network, partnered to work on a cross-chain protocol combining traditional finance and digital assets. It will allow SWIFT messages to manage token transfers, enabling the interbank network to support all blockchain environments by linking them together.
Useful material?
Market
To advance crypto-friendly regulation, Trump’s party needs to win a majority in the Senate
Oct 18, 2024
Incidents
The regulator believes that the court erred in not recognizing retail sales of XRP as securities transactions
Oct 18, 2024
Market
The leader was the Solana network, with 100 million active addresses per month
Oct 17, 2024
Crypto regulations
Amendments to the regulation of financial institutions have been published for public discussion until October 30
Oct 16, 2024
Market
Over the past four years, the company’s shares have grown by 1540%, while the index has gained only 111%
Oct 16, 2024
Incidents
Over the last 24 hours, the asset has updated its all-time high at $2,34
Oct 15, 2024