The operator of the international interbank system SWIFT in partnership with one of the largest consulting companies Capgemini has begun experiments in international payments using digital currencies of central banks (CBDC) of different countries.
“Today, the global CBDC ecosystem risks becoming fragmented as multiple central banks develop their own digital currencies based on different technologies, standards and protocols. If left unchecked, this fragmentation could lead to digital islands around the world,” said SWIFT Chief Innovation Officer Nick Kerrigan.
SWIFT is conducting experiments that are testing the feasibility of a gateway on the CBDC’s internal network. The gateway would intercept international transactions, translate them and send them to the SWIFT platform for onward transmission to another CBDC network or established payment system.
In addition, the company will begin working on interoperability between other digital assets and currencies as they are developed and globally regulated.
“If the experiments are successful, it will demonstrate that SWIFT has the capabilities and technical components to connect different networks. It would help solve a huge technological and industry problem facing the CBDC. And it could allow us to help central banks prepare their own CBDC networks for cross-border payments,” Kerrigan said.