Three Central Banks Currently Testing CBDC Pilots, SWIFT Reports

Three Central Banks Currently Testing CBDC Pilots, SWIFT Reports


Three Central Banks Conducting CBDC Pilots, Reports SWIFT

According to an announcement from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), three central banks have initiated pilots for central bank digital currencies (CBDCs). SWIFT states that it is now progressing with CBDC interoperability and that the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan are currently integrating the new solution into their infrastructure for direct testing. The third central bank involved in the pilot remains unnamed.

The focus of SWIFT’s work is on ensuring interoperability among different CBDCs as well as with existing fiat currencies and payment systems. With approximately 130 countries actively exploring CBDC technology, SWIFT acknowledges the potential for fragmentation issues in the future. Therefore, developing interoperability solutions is a top priority for the organization.

SWIFT’s “Connector” Technology Enables Seamless Transactions

SWIFT reveals that its new “connector” technology has already facilitated seamless transactions between different blockchain-based CBDC systems built on diverse frameworks. The organization has been working on CBDCs for over 18 months, conducting experiments and sandbox testing. During the initial phase, nearly 5,000 simulated transactions took place between two different blockchain networks and existing fiat-based payment systems. Participants from central and commercial banks noted that the connector allowed for smooth exchange of CBDCs, even when built on different platforms.

Hot Take: Ensuring Interoperability for CBDCs is Crucial for Global Adoption

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

As central banks around the world continue to explore CBDC technology, ensuring interoperability among different digital currencies becomes essential for global adoption. SWIFT’s efforts to develop a solution that allows seamless coexistence between CBDCs and traditional payment systems are commendable. By addressing potential fragmentation issues, SWIFT aims to create a unified and efficient financial ecosystem. The successful completion of these CBDC pilots by the three central banks will be a significant step forward in the evolution of digital currencies and their integration into the global financial landscape.

Author – Contributor at Lolacoin.org | Website

Daisy Hodley emerges as a luminary blending the roles of crypto analyst, devoted researcher, and editorial virtuoso into a harmonious symphony. In the realm of digital currencies, Daisy’s insights resonate with an exquisite resonance across a diverse spectrum of minds. Her adeptness in decoding intricate threads of crypto complexities seamlessly intertwines with her editorial finesse, translating intricacy into a captivating melody of understanding. A guiding star for both intrepid explorers and curious novices venturing into the crypto realm, Daisy’s insights form a compass for discerning decision-making amidst the ever-shifting currents of cryptocurrencies. With the touch of a literary artist, they craft a narrative that enriches the evolving mosaic of the crypto landscape.