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SWIFT trials cross-border CBDC with Cap Gemini

Monday 23 May 2022 12:14 CET | News

SWIFT, the organization responsible for messaging most cross border payments, has started a new set of CBDC interoperability experiments partnering with Capgemini.

It’s concerned that without interoperability, individual central bank digital currencies (CBDCs) could create new domestic silos, fragmenting the global payment landscape. SWIFT is also conducting experiments for tokenized digital assets with Clearstream, Northern Trust, and SETL.

This latest work with Cap Gemini is about enabling interoperability between different types of CBDCs, some of which might be centralized, and others using blockchain.

The tests explore interlinking these disparate systems via the SWIFT platform so that a cross border payment would link the origin CBDC system to SWIFT and from there on to the destination CBDC system. It’s tackling three use cases, CBDC to CBDC, fiat to CBDC, and CBDC to fiat. 

CBDC is being explored for cross border payments in part because of the current slow payments and the need to use intermediaries or correspondent banks. 




Source: Link


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Keywords: central bank, digital currency, regulatory sandbox, CBDC, DeFi, blockchain
Categories: DeFi & Crypto & Web3
Companies: Capgemini, SWIFT
Countries: World
This article is part of category

DeFi & Crypto & Web3

Capgemini

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SWIFT

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