SWIFT will launch the second phase pilot after finding “value” in CBDC

It is reported that SWIFT said in a statement on Thursday that a project operated by the company to interconnect the central bank digital currency (CBDC) has “obvious potential and value”. The project includes banks such as BNP, Intesa Sanpaolo (ISP) and Standard Chartered Bank (STAN), as well as the central banks of France and Singapore. Now it will enter the second stage and may study other applications such as trade financing and securities settlement. SWIFT said that it would continue to carry out beta testing in the next few months and start the second phase of research on applications such as conditional payment.

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On Thursday, it was reported that SWIFT, the global provider of financial messaging services, announced that their project to interconnect central bank digital currencies (CBDCs) has “obvious potential and value.” The project includes several banks and the central banks of France and Singapore. The first stage of the project has been successful, which now allows the project to continue to the second stage. This next stage of the project will focus on studying other applications such as trade financing and securities settlement. SWIFT hopes to carry out beta testing in the next few months, which will allow them to start the second phase of research on applications such as conditional payment.

With the rise of CBDCs, SWIFT appears to be positioning itself at the forefront of this new technology. The interconnection of CBDCs would offer several benefits such as faster cross-border payments while reducing transaction fees. Additionally, the ability to interconnect different CBDCs would also create a more unified and interconnected global financial system. The involvement of major banks and central banks such as BNP, ISP, STAN, and the central banks of France and Singapore bodes well for the project’s immense potential to reshape the financial sector.

SWIFT’s statement indicates a significant shift in the company’s strategy towards CBDCs. They are signaling an intention to provide more than just financial messaging services but also create a platform for the exchange of digital assets. By providing a solution to interconnect CBDCs, modernize the financial infrastructure, and utilizing blockchain technology for conditional payments, SWIFT seems to be taking a step towards expanding its service offerings beyond traditional categorical messaging.