Three different central banks are beta-testing a central bank digital currency (CBDC) interoperability project according to SWIFT. Indeed, the global finance messaging system has confirmed the progress of the project in a recent update that was released.
The interoperability project is developing CBDCs to be used for cross-border payments. Moreover, the update notes that the Hong Kong Monetary Authority and the Central Bank of Kazakhstan are set to integrate the solutions to the digital asset infrastructure.
SWIFT Confirms Three Central Banks Working on CBDC Interoperability
The presence and development of CBDCs have long been key aspects of the digital asset industry. In the United States, the idea has been met with rather rampant opposition. However, a host of countries are still seeking to utilize digital currency technology within governmental central banks.
Now, three central banks are reportedly testing interoperability solutions, according to SWIFT. Specifically, a recent update from the global finance network has confirmed the testing phase in a new update. The project could be vital to the global cross-border payments conducted with these currencies.
SWIFT Chief Innovation Officer Tom Zschach discussed the new project. “Our focus is on interoperability, ensuring that new digital currencies can seamlessly coexist with each other and with today’s fiat-based currencies and payment systems,” Zschach said.
The messaging network had created the CBDC connector mechanisms, with sandbox testing taking place in March. Moreover, SWIFT noted that such testing affirmed the value of the process. Subsequently, that firm noted the participation of 18 global financial institutions.
Among those were the Royal Bank of Canada, the Banque de France, the Monetary Authority of Singapore, and more. The process should bring us closer to global advancements in CBDC usage. Moreover, it confirms that work on the projects is being prioritized.