After eight months of experimentation, SWIFT presents its plans for its digital coin network. The intention is to require more efficient and fewer connections between banks in the future.
SWIFT is the messaging system between banks for, among other things, money transfers between players. For the past eight months, it has been experimenting with different technologies and currencies with the central banks of France and Germany and some major financial players. Naturally, this concerns CBDCs, central bank digital currency.
According to Reuters, that first test will continue with more advanced testing in the coming year. The setup is partly similar to how cryptocurrencies work, with different parties connecting to a central hub. Today this happens among financial institutions with different connections between each player.
Although several organizations are working on the concept, SWIFT is in a special position. The Belgian company is already active in almost every country, with more than 11,500 banks. That does give the organization some head start to roll out a system with digital coins on a large scale.