3 Central banks are currently testing Swift’s CBDC interoperability service
Swift reported that its CBDC interoperability testers completed 4,736 transactions in the last 14 weeks.
The Society for Worldwide Interbank Financial Telecommunication (Swift) is a popular financial services provider company, providing payment services for a certain number of banks globally. Swift provides secured & interoperable messaging services to the banks and banks use that message service to complete the transactions practically.
In March of this year, Swift announced the launch of the testing phase for its Swift CBDC interoperability solution. This CBDC solution is a tool that can act as a highly secured junction between different networks (CBDC networks).
On 13 Sep 2023, Swift reported that more than 30 financial institutions globally are participating in the second phase of testing its CBDC interoperability solution.
During the last 12 weeks, participants completed 4,736 transactions between the Quorum and Corda blockchain networks.
Interestingly three Central banks reportedly are now participating in this second phase of testing the CBDC interoperability service. Participants who grabbed popularity in this testing program are the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, and Bank of Thailand.
Currently Swift connects nearly 11,000 banks globally across 200+ countries & territories. So CBDC may play a vital role in the future’s finances, no matter how much people are opposing the CBDC concept currently.
At present, nearly 120+ central banks are engaged in the Central Bank Digital Currency (CBDC) development. So far 19 central banks completed their CBDC development & are now in the public testing phase in collaboration with regional banks.
In the race for CBDC development & adoption, America is standing in the last of the queue. On the one hand, the majority of the people oppose the CBDC concept, as the digital US dollar may be used as a surveillance tool against the user. Other hand, the US Federal Reserve believes that the US dollar is already digital & doesn’t need CBDC technology. Despite all these hurdles, the US Fed is working on CBDC, or say digital dollar, but with precise steps in order to keep CBDC’s negative impact away.
Read also: Infamous crypto entrepreneur SBF’s parents played vital role in launching of FTX
