SWIFT, a global bank messaging platform, is working on a project to make central bank digital currencies (CBDCs) interoperable, the company said on Sept. 13. It also announced a new phase of testing for its “CBDC connector solution” in a sandbox environment.
Three central banks – the Hong Kong Monetary Authority, the Central Bank of Kazakhstan and another undisclosed one – have joined the beta phase of the project and connected their infrastructure with SWIFT’s solution for direct testing.
The project started in March with more than 18 participants, including major banks and central banks from France, Germany, Singapore and Canada.
They conducted over 5,000 transactions in 12 weeks using the sandbox. The number of participants will now increase to over 30.
SWIFT has been involved in several CBDC-related projects, such as a wholesale CBDC project with the New York Federal Reserve Bank using a regulated liability network. SWIFT connects over 11,500 financial institutions worldwide through its messaging system. However, CBDCs could pose a threat to its dominance in some cases.