New Cryptocurrency Explained by SWIFT!

It is an important part of the traditional financial system that facilitates cross-border payments between banks. SWIFTannounced that it started testing the blockchain last September.

Continuing its work on the crypto money sector, SWIFT announced that it has completed its studies on CBDCs, which are also studied by the central banks of many countries.

SWIFT is a global platform that claims to have solved the problem of interoperability between different networks in its new statement. central bank digital currency (CBDC) He said he created the system.

SWIFT stated that after 8 months of experimentation on different technologies and currencies, it has completed its work for a global CBDC network.

In addition to the national central banks of France and Germany, global banks such as HSBC, Standard Chartered and UBS have also participated in SWIFT’s trial work.

The trial involving banking giants looked at how CBDCs could be used internationally and converted to fiat money if needed.

Stating that about 90% of the world’s central banks are using or trying CBDCs, SWIFT’s head of innovation Tom Zschach said in his statement:

“Digital currencies and CBDCs have great potential to shape the way we all pay and invest in the future.

But this potential can be unlocked if the different approaches under investigation have the ability to connect and work together.

Our solution for CBDCs will enable central banks to simply and directly connect their networks to all other payment systems in the world through a single gateway, enabling the instant and seamless flow of cross-border payments.

Tokenization has great potential when it comes to strengthening liquidity in the markets and increasing access to investment opportunities, and SWIFT’s existing infrastructure can ensure that these benefits are realized at the earliest opportunity by as many people as possible.

Also, most central banks are researching, experimenting with or using CBDCs. At the same time, banks do not want to lag behind Bitcoin and other cryptocurrencies, but are grappling with technological complexities.

We are working to address this complexity and we believe that Blockchain networks can be interconnected through a single gateway for cross-border payments.”