Swift announced that three central banks are now beta testing its Swift CBDC connector solution, which enables the use of central bank digital currency (CBDC) for cross border payments. Two of the named central banks are the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan. They are integrating the solution with their infrastructure to test it.
The Swift offering is consistent with other Swift solutions in that it is based on messaging. This contrasts with most DLT solutions that combine the message with the money movement. A key reason for continuing to use messaging is to ensure interoperability with legacy payment systems.
Apart from the CBDC connector solution, Swift is also running a second phase of its CBDC sandbox which has expanded from 18 organizations to 30. It includes the central banks of Australia, Germany, Hong Kong, and Thailand as well as FX central counterparty CLS.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
