Swift tests central bank digital currency connection – what was discovered?

Swift Releases Sandboox Test Results for Central Bank Digital Currency Integration Solution

Swift has announced the results of the second phase of sandbox tests for its innovative solution aimed at connecting central bank digital currencies (CBDCs). The tests have shown that Swift’s connector can enable financial institutions to perform various transactions using CBDCs and other digital tokens. This integration aims to smoothly bridge new technologies with existing business practices.

Tests Involving 38 Financial Institutions

A total of 38 institutions participated in the tests, including central banks, commercial institutions, and market infrastructures. Research results indicate that Swift’s solution can significantly improve trade flows, support the development of tokenized securities markets, and facilitate efficient foreign exchange settlements.

Interoperability Key to Instant Transactions

The Swift team focused on ensuring interoperability as a key element of the strategy enabling instant and seamless transactions. Previous tests have demonstrated that Swift’s solution can connect different CBDC networks and integrate them with traditional fiat currencies, enabling cross-border money transfers.

Solution Development and Support for New Digital Networks

There are plans to expand Swift’s solution functionalities to support a wider range of new digital networks, including platforms for deposited tokens in addition to CBDCs. The company hopes that its innovative approach will “provide CBDC network operators in central banks with straightforward activation and integration of national CBDC networks for cross-border payments.”

Swift has previously proved that central bank digital currencies and tokenized assets can operate smoothly within the existing financial infrastructure. Striving for continuous improvement and enhancement of its solution, the company focuses on facilitating financial processes for financial institutions while embracing new technologies. As a result, Swift’s solution can play a significant role in shaping the future of payment systems worldwide.