Banking giant HSBC successfully tested transactions between two CBDCs

Banking giant HSBC and tech giant IBM announced their success of digital wallet and token testing to settle transactions within a matter of clicks. 

At present there are many banks, which are working on the development of their payment system with the use of blockchain technology, to compete perfectly against all existing traditional giant banking services. 

HSBC is also one of the giants in banking legends, which is working on the development and pilot program on its digital token and digital wallet, which is fully inclined to the blockchain-based central bank Digital Currency (CBDCs), bonds, and foreign exchange integration.

Through the press release, IBM said that they conducted experiments on their project for a total of 4 months under the hybrid cloud environment. In the hybrid cloud environment, incorporated public and private included.

According to the IBM statement, end-to-end testing by the entities successfully tested the transaction lifecycle entailing CBDCs, bonds, and foreign exchange as part of the testing phase.

It is much interesting to note that both IBM and HSBC were involved in the digital blockchain project initiative of the Banque de France. On the involvement of these two entities in Banque de France, Mark Williamson, HSBC Managing Director GFX stated about their excitement. 

“We were pleased to be selected by Banque de France to conduct this exciting experiment….collaboration with IBM on this initiative has resulted in this milestone of streamlining front-to-back securities and foreign exchange DVP and PVP settlement processes. Interoperability across different DLT’s and technologies was key in demonstrating how to save time, reduce market risk and improve security for transactions between central banks, commercial banks, and in time our clients around the world”

Further, IBM pointed out the significance of this project initiative and said that the roadmap of their current project will help the CBDCs rollout in between the Central Banks globally. 

The recent few months showed that HSBC is working mostly in blockchain inclined projects. HSBC established a partnership with Wells Fargo to use blockchain technology in settling foreign exchange transactions. 

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