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SWIFT’s CBDC Interconnection Project Enters Second Stage

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It is reported that SWIFT said in a statement on Thursday that a project operated by the company to interconnect the central bank digital currency (CBDC) has \”…

SWIFTs CBDC Interconnection Project Enters Second Stage

It is reported that SWIFT said in a statement on Thursday that a project operated by the company to interconnect the central bank digital currency (CBDC) has “obvious potential and value”. The project includes banks such as BNP, Intesa Sanpaolo (ISP) and Standard Chartered Bank (STAN), as well as the central banks of France and Singapore. Now it will enter the second stage and may study other applications such as trade financing and securities settlement. SWIFT said that it would continue to carry out beta testing in the next few months and start the second phase of research on applications such as conditional payment.

SWIFT will launch the second phase pilot after finding “value” in CBDC

Analysis based on this information:


SWIFT, the global financial messaging network, has declared that its project to interconnect central bank digital currency systems has “obvious potential and value.” This statement came on Thursday as SWIFT announced the entry of the project’s second phase, which includes exploring potential applications in trade financing and securities settlement.

The project includes banking giants such as BNP, Intesa Sanpaolo (ISP), Standard Chartered Bank (STAN), and the central banks of France and Singapore. The primary goal of the project is to facilitate the interconnection of existing CBDC systems to enhance cross-border payments and settlement processes globally.

The second phase of the project aims to analyze and study the unique use cases of CBDCs in trade financing and securities settlement. Trade financing is a critical aspect of international trade, and digitizing it will lead to easier access to financing options for businesses. On the other hand, digitizing securities settlement will enhance transparency, security, and speed of the transaction process.

SWIFT stated that it will continue its beta testing in the coming months and develop research in applications such as conditional payment. These payments depend on the fulfillment of certain conditions, which could be either event-based or time-based, thus providing a new level of flexibility in payments.

This project shows how global financial players such as SWIFT are taking CBDCs seriously and investing in their research and development. The interconnection of CBDC systems will make them interconnected and interoperable, making cross-border payments more efficient and cost-effective. It also reinforces the idea of central banks’ increased interest in digital currencies as these institutions partner with financial institutions to explore the potential of CBDCs further.

In conclusion, SWIFT’s project to interconnect CBDC systems is an essential development in the financial sector. The second phase of the project’s exploration of the applications of CBDCs in trade financing and securities settlement will further strengthen the network’s capabilities. This project shows SWIFT’s commitment to developing and enhancing cross-border payments their future-readiness.

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