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May 20, 2022
by Usha Yadav
SWIFT Announced Conducting Cross-Border Tests for CBDC
SWIFT, the international payments organization, has stated that cross-border tests for central bank digital currencies will be conducted (CBDCs). This is the organization's latest effort in the digital assets area, which has been heating up in recent months. The company claimed it would use CBDCs to perform payments to "take the next step toward seamless cross-border payments incorporating digital currencies." This project will be carried out in conjunction with Capgemini, an IT business.
As a result, the leading payment network intends to concentrate on enabling CBDC use on a global scale. SWIFT's Chief Innovation Officer, Tom Zschach, discussed the necessity for a uniform system. He said,
"Facilitating interoperability and interlinking between different CBDCs being developed worldwide will be critical if we are to realize their potential fully. Today, the global CBDC ecosystem risks becoming fragmented with numerous central banks developing their digital currencies based on different technologies, standards, and protocols,"
SWIFT has already devoted time and effort to investigating CBDCs. It collaborated with Accenture on a report that discussed the practical requirements, among other things. CBDCs are thought to have a significant favorable influence on international payments. The comments in the essay are consistent with statements made by executives from other organizations and numerous central banks. As banks finalize their CBDC plans in the coming months, many more such developments may be.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.