SWIFT’s CBDC Interoperability Pilot is Joined by Additional Central Banks

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SWIFT has connected the central banks of three countries to the second stage of its pilot testing for the compatibility of traditional systems with CBDC.

The Monetary Authority of Singapore, the National Bank of Kazakhstan, and another unnamed regulator have integrated an infrastructure solution for direct transaction testing.

The group has also expanded to include the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, Bank of Thailand, CLS payment system and others, who are now exploring the various use cases of CBDC.

This includes trigger payments for various digital trading platforms, currency exchanges models, delivery and payment mechanisms, and liquidity preservation.

The testing began in May 2022, where over 5,000 cross-border payments were made between two blockchains and existing payment systems.

In September of the same year, SWIFT and Chainlink agreed to develop an additional mechanism, which would allow traditional financial institutions to make cryptocurrency transfers.