Three central banks have joined the beta phase of banking messaging platform SWIFT's central bank digital currency (CBDC) interoperability project, the company announced on September 13. It has also entered a new phase of sandbox testing, he said.
The Hong Kong Monetary Authority, the Central Bank of Kazakhstan and an unnamed central bank have integrated their infrastructure with SWIFT's โCBDC connector solutionโ for direct testing, the company said. saying.
The first phase of sandbox testing started in March with a lineup from more than 18 participants, including Royal Bank of Canada, Banque de France, Sociรฉtรฉ Gรฉnรฉrale, BNP Paribas, Monetary Authority of Singapore, HSBC, Deutsche Bundesbank and NatWest. The sandbox had over 5,000 transactions over the course of 12 weeks. Now, the number of participants will exceed 30.
from today #fintech Digest includes SWIFT beta testing interconnection #CBDC with existing fiat infrastructures, and Telegram integrating The Open Network (TON) based self-custody crypto wallet into its messaging platform of 800 million active users. https://t.co/37R1YAVtMC pic.twitter.com/HkaxqEzPKF
โJohn Kiff (@Kiffmeister) September 13, 2023
SWIFT has created several projects involving CBDC, including a wholesale CBDC project in conjunction with the Federal Reserve Bank of New York using a regulated accountability network.
Related: SWIFT says blockchain integration 'more plausible' than unifying CBDCs
SWIFT messaging connects more than 11,500 financial institutions around the world. It has an uneasy relationship with CBDCs because the new technology could compete with them in many circumstances. The various CBDC bridge projects supported by the Bank for International Settlements are examples of this potential. However, competition breeds innovation.
FAST Announced in August that 89% of the transactions it supports are processed in one hour, exceeding the G20 goal of 75% settlements in one hour by 2027. In addition, 84% of transactions on the network "are carried out directly or with a single intermediary". However, he noted that in practice, only 60% of wholesale payments are made within an hour due to regulatory controls, work schedules and batch processing.
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