SWIFT, the global bank messaging network, has announced plans to launch a new platform within the next one to two years. This platform will connect the emerging central bank digital currencies (CBDCs) with the existing financial system.
What Happened: SWIFT’s head of innovation, Nick Kerigan, revealed that the new platform will be designed to coincide with the launch of the first major CBDCs. Reuters reported that this move is expected to be a game-changer for the evolving CBDC ecosystem, given SWIFT’s crucial role in global banking.
“We are looking at a roadmap to productize (launch as a product) in the next 12-24 months,” Kerigan said in an interview. “It’s moving out of experimental stage towards something that is becoming a reality.”
Around 90% of the world’s central banks are exploring digital versions of their currencies. While they aim to keep up with cryptocurrencies like Bitcoin (CRYPTO: BTC), they face technological challenges.
SWIFT’s recent six-month trial, involving 38 central banks, commercial banks, and settlement platforms, focused on ensuring that different countries’ CBDCs can be used together, even if they are built ...