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Central banks testing their digital currencies climb to 18

The international SWIFT payments platform continues advances that will enable payments using central bank digital currencies, also known as CBDCs.

The system reported that its “experimental connector” for digital currencies was tested from 14 to 18 central and commercial banks around the world in a collaborative sandbox.

During the exams Almost 5,000 transactions were simulated between two blockchain networks different and the existing payment systems are based on fiat currency, suggests a statement from Swift leaked to the CriptoNoticias editors.

“Participating central and commercial banks have expressed their strong support for the further development of the solution and noted the continuous exchange of CBDCs, also between the different platforms created,” noted SWIFT.

The platform announced a new step it will be taking towards developing payments with CDBC through its system.

With that in mind, they will be developing a beta version of payments with central bank digital currencies, so a second test phase takes place in the sandboxin which they will focus on new use cases for CBDCs.

“Use cases to be tested include securities settlement (eg, asset swaps), trade finance, and contingent payments (aka scheduled payments).”

“Our experiments have demonstrated the critical role Swift can play in a financial ecosystem where digital currencies and traditional currencies coexist,” said Tom Zschach, Swift’s chief innovation officer.

Financial institutions that participated in the tests include Banque de France, Deutsche Bundesbank, Monetary Authority of Singapore, BNP Paribas, HSBC, Intesa Sanpaolo, NatWest, SMBC, Société Générale, Standard Chartered and UBS.

As announced by CriptoNoticias, SWIFT showed the first results of his experiments with CBDCsin October last year.

At the time, the tests made it possible to “close the gap between various distributed ledger technology (DLT) networks and existing payment systems”.

Based on this, a test sandbox was set up where central and commercial banks could experience the final solution to validate its effectiveness and share information to guide its development.

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