SWIFT Is Experimenting With Decentralized Technologies To Allow CBDC Interconnection – Bitcoin News

SWIFT, the interbank payments protocol and messaging system, has announced it is working to connect various central bank digital currency (CBDC) protocols to development today. The company is partnered with Capgemini, a digital services provider, making a series of experiments to ensure that the new set of CBDCs has cross-border payments and remittance capabilities.

SWIFT Set to Modernize Connection Systems

SWIFT, the bank and payments interconnection protocol, is working to bring its services to the upcoming group of central bank digital currencies. The member-owned cooperative has announced it is already running experiments with decentralized platforms to ensure remittances and cross-border payments will be available to users in these currencies in the future.

To SWIFT, the interconnection of this new kind of currency will be pivotal for its success. While there are not many CBDCs operating currently, according to reports from the Bank of International Settlements, nine out of ten central banks are now exploring the possibilities of CBDCs, meaning that there is interest in the subject.

Nick Kerigan, Head of Innovation at SWIFT, remarked on the importance of this interconnection, stating:

Different systems and different CBDCs will need to be able to work together efficiently, or it will hamper the ability of businesses and consumers to make frictionless cross-border payments using CBDCs.

CBDC Experiments

The experiments that SWIFT is performing, in partnership with Capgemini, a digital services company, are testing the ability of these new currencies to be exchanged between different systems not designed to perform such functions.

While the internal workings of the system have not been explained in the public, SWIFT clarifies that the already existing payment infrastructure is being reused, including existing bank messaging standards and authentication models, ISO 20022, and SWIFT’s private key infrastructure.

So far, the experiments, which use several decentralized ledger platforms, such as Corda and Quorum, show it could be possible to achieve the goals proposed. This would mean that CBDCs could coexist with traditional fiat currencies using SWIFT systems, a transitional phase to total digitization.

SWIFT also hinted at the possibility of other types of crypto assets in its network, as they became regulated at a global level.

What do you think about the CBDC experiments being performed by SWIFT? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He is himself as late as the game, entering the cryptosphere when the price rises during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view. About crypto success and how it helps the unbanked and underserved.

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