Central Banks Join SWIFT's CBDC Interoperability Project in Beta Phase
Summary:
Three central banks, including Hong Kong Monetary Authority and Central Bank of Kazakhstan, have joined SWIFT's CBDC interoperability project. SWIFT has also entered a new phase of sandbox testing. The project initially involved 18 participants and now exceeds 30. SWIFT aims to innovate despite potential competition with CBDCs. 89% of SWIFT's transactions are processed within an hour, surpassing the G20's goal. However, only 60% of wholesale payments are concluded within an hour due to regulatory controls and batch processing.
SWIFT, the bank messaging platform, has revealed that three central banks, the Hong Kong Monetary Authority, the Central Bank of Kazakhstan, and an undisclosed central bank, have joined the beta phase of its central bank digital currency (CBDC) interoperability project. Additionally, SWIFT has entered a new phase of sandbox testing for its CBDC connector solution. The project initially had 18 participants, including Royal Bank of Canada, Banque de France, and HSBC, but now the number of participants will exceed 30. SWIFT has been actively involved in CBDCs and aims to innovate despite potential competition with the new technology. The company recently announced that 89% of its transactions are processed within an hour, surpassing the G20's goal of 75% one-hour settlements by 2027. However, regulatory controls, working hours, and batch processing contribute to the fact that only 60% of wholesale payments are concluded within an hour.
Published At
9/13/2023 9:32:10 PM
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