SWIFT Mulls CBDC Platform Launch Within Two Years  

Brussels, Monday, April 1, 2024-The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global messaging network for banks, is gearing up to launch a new platform for central bank digital currencies (CBDCs) within the next 12 to 24 months, according to a Press release issued by SWIFT. ¹

Earlier in September 2023, SWIFT completed a six-month trial involving 38 central banks, commercial banks, and settlement platforms, paving the way for this launch. ²

Participants in the sandbox came from around the world and across the industry, including central banks and monetary authorities from Australia, Czechia, France, Germany, Singapore, Taiwan and Thailand, among others. Commercial bank and market infrastructure participants included ANZ; Citibank; CLS Group; DBS; Deutsche Bank; DTCC; HSBC; Hua Nan Commercial Bank; Intesa Sanpaolo; NatWest Group; Santander; Société Générale; Standard Chartered; Sumitomo Mitsui Banking Corporation; The Shanghai Commercial & Savings Bank, Ltd; The Standard Bank of South Africa; United Overseas Bank, and Westpac Banking Corporation.

The trial focused on ensuring compatibility between different CBDCs built on varying underlying technologies, potentially mitigating risks associated with payment system fragmentation.

In this trial, SWIFT highlighted the trial’s ability to demonstrate the viability of using CBDCs for complex trade or foreign exchange payments, with the potential for automation to enhance speed and reduce costs. 

The positive reception from participants in the trial has provided SWIFT with a clear timeline for development.

While the exact launch date could be subject to adjustments depending on the timing of major CBDC launches, getting the platform operational early will be crucial for SWIFT to maintain its dominant position in the interbank network landscape.

1. reuters: https://www.reuters.com/business/finance/swift-planning-launch-new-central-bank-digital-currency-platform-12-24-months-2024-03-25/[↩]
2. swift.com: https://www.swift.com/news-events/press-releases/swift-sets-industry-seamless-introduction-cbdcs-cross-border-transactions-interlinking-solution-finds-more-use-cases[↩]