Global financial messaging network SWIFT is planning to launch a new platform within the next one to two years to integrate central bank digital currencies (CBDC) with the existing financial system. This move comes as approximately 90% of the world’s central banks are exploring digital currency options, aligning with the advancements in the crypto space like Bitcoin.

Nick Kerigan, SWIFT’s head of innovation, revealed that the organization’s recent trial involved nearly 40 central banks, commercial banks, and settlement platforms, making it one of the largest global collaborations on CBDCs and tokenized assets to date. The aim is to productize this initiative in the next 12-24 months, moving from the experimental stage to a tangible reality.

SWIFT’s connector has shown the capability to interlink multiple asset and cash networks, enabling atomic delivery versus payment across platforms. The pilot engaged central banks from various countries, including Germany, France, and Australia, among others.

Despite the progress, some countries are cautious about rushing into developing their digital currencies due to technological and regulatory challenges. For instance, Sweden’s Riksbank highlighted the need for extensive technical and regulatory development to ensure secure offline payments with e-kronas.

Federal Reserve Chair Jerome Powell also indicated that the Federal Reserve is not yet ready to recommend or adopt a CBDC, emphasizing that there is no immediate rollout of a central bank digital currency. SWIFT aims to address industry fragmentation through its new platform, marking a significant milestone in the CBDC ecosystem.

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