The company said it is proceeding with the second phase after the first phase trial has shown satisfactory results.
The Society for World Interbank Financial Telecommunications (SWIFT) announced According to CoinDesk, it will move into a second phase of testing to evaluate progress on central bank digital currencies (CBDCs) and applications such as trade finance and securities settlement. report According to the company’s announcement.
SWIFT occupies a very important place in the global financial ecosystem as the main way for different banks in different countries to communicate. To maintain its relevance and align with the current evolution of the financial ecosystem, SWIFT is currently testing how CBDCs can interoperate.
The company said it is proceeding with the second phase after the first phase trial has shown satisfactory results. An initial trial involving about 18 entities should test whether a CBDC can move between distributed ledger technology (DLT) and the infrastructure that underpins the traditional financial system.
According to shared results, the CBDC has performed as expected and stakeholders are now calling for increased development across the board.
Tom Zschach, Chief Innovation Officer at Swift, said: We are happy to have community support to develop further between two different blockchain networks and traditional fiat currencies. We are especially pleased that many of the participants have expressed their desire for continued cooperation on interoperability. ”
If SWIFT records the necessary breakthrough in CBDC interoperability capabilities, it will become very easy to maintain its role in a CBDC-infested world in the near future.
SWIFT CBDC testing, next steps
As announced by the company, next steps include testing cross-border payments related to trade finance and securities settlement.
“Interoperability is key to realizing the potential of CBDCs to provide real-time cross-border payments. , the risk of fragmentation is also increasing.Continued collaboration with Swift, central banks and other commercial banks to innovate solutions that make cross-border payments faster, cheaper and more secure. It provides a valuable platform.”
Today, only a handful of countries, including the Bahamas and Nigeria, have fully functioning CBDCs in circulation. Focusing on adoption is another topic, but more countries, including the US, UK and China, are researching and testing their own versions of his CBDC.
As of yet, no major economy has a CBDC, and there have been calls for uniformity in design, and SWIFT has responded.
Next
![Benjamin Godfrey](https://www.coinspeaker.com/wp-content/uploads/authorphoto/benjamin-godfrey-profile-photo-02.jpg)
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications and innovations in blockchain technology, driving general acceptance and global integration of emerging technologies. His desire to educate people about cryptocurrencies has inspired his contributions to famous blockchain-based media and sites. Benjamin Godfrey loves sports and farming.