Three central banks have initiated new pilot programs for central bank digital currencies (CBDCs), as revealed in an announcement by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
According to SWIFT’s latest statement, they are entering a new phase of work centered on CBDC interoperability. In this phase, three central banks are currently beta-testing systems designed to link CBDCs with the participation of 30 financial institutions exploring various use cases.
SWIFT has disclosed that the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan have already started integrating this new solution with their existing infrastructure for direct testing purposes. However, SWIFT hasn’t disclosed the identity of the third central bank involved in this initiative.
SWIFT acknowledges the potential for fragmentation issues as numerous CBDCs are being explored by nearly 130 countries. They emphasize that addressing these potential issues makes interoperability solutions a top priority for the organization.
SWIFT highlights that its new “connector” technology has successfully facilitated seamless transactions between different blockchain-based CBDC systems, even when they were built on completely different frameworks.
SWIFT has been actively working on CBDCs for over 18 months. During the initial phases of experiments and sandbox testing, they simulated almost 5,000 transactions between two distinct blockchain networks and existing fiat-based payment systems. Participants from central and commercial banks noted that the connector enabled smooth exchanges of CBDCs, even when they were based on different platforms.
In summary, SWIFT is collaborating with central banks to pilot CBDC interoperability solutions, recognizing the importance of seamless integration in the rapidly evolving landscape of digital currencies.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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