SWIFT Believes In Solutions To CBDC Adoption

On Wednesday, SWIFT – the world’s leading provider of secure financial services confirmed that the solution to adopt central bank digital currencies (CBDSs) has no major obstacles longer.

With this solution, the payment organization can connect over 11,500 banks and funds across 200 countries all over the world, heading to the most excellent CBDC settlements. It means all transactions between these central bank digital currencies can occur with no barriers.

According to Kenneth Goodwin, the Blockchain Intelligence Group’s Director of regulatory and institutional affairs, the adoption is the foundation for the state to build the costly infrastructure to connect cryptocurrencies in many countries. Just only for SWIFT, this outline has been drawn at least eight months ago. Goodwin added, this firm’s scale even added challenges to the blueprint.

“The central banks are basically saying — these governments are saying, ‘How do we have the right network infrastructure that’s going to prepare us… to actually do these executions on a digital platform that’s very secure?” Goodwin said. “And that’s where SWIFT comes into play.”

These difficulties that this firm faces during this time of research are the connection between CBDCs and SWIFT’s existing payment platform, together with the methods to compete with other rivals like Bitcoin’s lightning Network.

Lightning Network is the layer-2 protocol that is built on Bitcoin’s blockchain to adopt payments with CBDCs. With the new transition to Taro Protocol, CBDCs can produce more assets like stablecoins and execute transactions.

“SWIFT has successfully shown that Central Bank Digital Currencies (CBDCs) and tokenized assets can move seamlessly on existing financial infrastructure – a major milestone towards enabling their smooth integration into the international financial ecosystem,” SWIFT said in a statement. 

The research team conducted two separate tests and concluded that the connection between assets and current digital assets is in the smooth execution and even creates a better connection with traditional financial counterparts in the market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Ken

CoinCu News