Global bank messaging network SWIFT is gearing up to launch a new platform within the next one to two years to connect the emerging wave of central bank digital currencies (CBDCs) to the existing financial system. This move, anticipated to be one of the most significant developments for the nascent CBDC ecosystem, highlights SWIFT’s pivotal role in global banking. The platform’s timing is expected to coincide with the rollout of major CBDCs, as approximately 90% of the world’s central banks are currently exploring digital currency initiatives, driven by the need to keep pace with cryptocurrencies like bitcoin while navigating technological challenges.
SWIFT’s recent six-month trial, involving a consortium of 38 central banks, commercial banks, and settlement platforms, showcased its commitment to facilitating interoperability among different countries’ CBDCs, regardless of the underlying technologies. This successful trial not only demonstrated the feasibility of using CBDCs for complex trade and foreign exchange transactions but also indicated potential cost savings and efficiency gains. SWIFT’s head of innovation, Nick Kerigan, expressed confidence in the project’s progress, outlining plans to transition from experimentation to productization within the next 12 to 24 months. While the timeline remains contingent on the timing of major CBDC launches, SWIFT’s proactive approach underscores its determination to sustain its dominant position in the global banking infrastructure.