Global financing messaging platform SWIFT has collaborated with Capgemini to test the possibility of linking domestic CBDCs for cross-border payments.
A new report from the Bank for International Settlements reveals that the CBDCs cut across economies that hold more than 90% of the world’s GDP.
Most of the central banks in the study are at an advanced level in their research on the CBDC, with nine countries, Nigeria and The Bahamas, having implemented the digital currency.
The news comes amid increasing interest in the Central Bank Digital Currencies by the central banks globally with most having taken steps.
The Chief Innovation Officer at SWIFT, Thomas Zschach, says that facilitating interoperability and interlinking between CBDCs globally is critical for full potential realization. The executive cautions of the risks of fragmentation with the various central banks.
SWIFT tested a DLT-based CBDC network and a real-time gross settlement system in 2021 for cross-border transactions. The company is assessing the possibility of the interconnection of CBDC networks.