Mar 10, 2023

SWIFT Successfully Tests Interlinking of Central Bank Digital Currencies

On March 9, Society for Worldwide Interbank Financial Telecommunications (SWIFT) released a statement announcing the successful results of its pilot test of linking different central bank digital currencies (CBDCs). Over a 12-week period, the international financial institution simulated nearly 5,000 transactions between two different blockchain networks and existing fiat payment systems.

The testing involved 18 major financial institutions from around the world, including the Royal Bank of Canada, Banque de France, Société Générale, BNP Paribas, Monetary Authority of Singapore, HSBC, Deutsche Bundesbank, NatWest and more. SWIFT reported that the results of the sandbox testing found that its interlinking solution could meet the needs of central and commercial banks for CBDCs interoperability, ensuring CBDCs could be successfully used in cross-border payments.

In addition to the positive results, SWIFT also noted a “strong degree of alignment” between participants as to how CBDCs are likely to function in the future. To continue the progress, SWIFT plans to run a second phase of its CBDC sandbox and develop its “CBDC interlinking solution into a beta version for payments with enhanced atomicity.”

The OMFIF Digital Monetary Institute estimates that 24% of central banks will develop a CBDC solution in the near future. Currently, over 110 central banks around the world are exploring the use cases of CBDCs. Lewis Sun, global head of domestic and emerging payments at HSBC, stated: “Interoperability is key to realising the potential of CBDCs to deliver real-time cross-border payments. While interest in CBDCs is growing, so is the risk of fragmentation as a widening range of technologies and standards is being experimented with.”

The successful pilot test of linking different CBDCs has highlighted the potential of using NFTs in the web3 space. NFTs are digital assets that are secured on the blockchain and can be used to represent real-world assets such as artwork, music, and videos. With the rise of NFTs, there is an increased demand for NFT marketing and promotion strategies.

NFT marketing agencies are emerging to help creators and companies to promote their NFTs on social media platforms such as Twitter. These agencies provide services such as creating marketing campaigns, developing content, and running paid ads on Twitter. Additionally, they can help creators to increase the visibility of their NFTs and maximize their selling potential.

The use of CBDCs and the emergence of NFTs in the web3 space are two key developments that will shape the future of finance. The successful pilot test of linking different CBDCs has demonstrated the potential of using these digital assets in the financial sector. Furthermore, the rise of NFTs has created an opportunity for companies to promote and sell their digital assets. With the help of NFT marketing agencies, creators and companies can leverage the power of social media to reach a wider audience and maximize their selling potential.

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