On March 9, 2023, Society for Worldwide Interbank Financial Telecommunications, a bank messaging platform, expressed their optimism over a pilot test of connecting different central bank digital currencies (CBDCs), as stated by Cointelegraph.
According to Cointelegraph, SWIFT tested around 5,000 transactions between two separate blockchain networks and current fiat payment systems. Reportedly, financial institutions such as Royal Bank of Canada, Banque de France, Société Générale, BNP Paribas, Monetary Authority of Singapore, HSBC, Deutsche Bundesbank, NatWest, among others, took part in the study.
“Overall, the results of the sandbox testing found that Swift’s experimental interlinking solution can meet the needs of central and commercial banks for CBDCs interoperability, ensuring CBDCs can be successfully used in cross-border payments,” SWIFT stated.
Based on information by Cointelegraph, SWIFT highlighted the presence of a “strong degree of ailment” between participants on how CBDCs will work in future. SWIFT intends to develop a second phase of its CBDC sandbox and create its “CBDC interlinking solution into a beta version for payments with enhanced atomicity.”
“Interoperability is key to realising the potential of CBDCs to deliver real-time cross-border payments. While interest in CBDCs is growing, so is the risk of fragmentation as a widening range of technologies and standards is being experimented with,” Lewis Sun, global head of domestic and emerging payments, HSBC, concluded.
(With insights from Cointelegraph)