The Strategist

SWIFT explores interaction with digital currencies

12/22/2021 - 07:43

SWIFT, the international interbank payment and messaging system, is considering how to interface with digital currencies from global central banks for cross-border transactions, the company said in a statement.

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In the next year, SWIFT expects to accelerate introduction of its new services for the global financial community. The SWIFT Go service, for example, will form the basis for small-value cross-border payments, while an iteration of the Payment Pre-validation service will appear in the first half of 2022. "Sophisticated predictive analytics techniques will be used to increase data coverage and accuracy," the report adds.

It is noted that the company will also launch an enhanced platform that will provide full transaction management, orchestrating interaction between financial institutions and other market participants to reduce barriers, optimise speed and ensure transaction transparency and predictability. It is planned that accelerated settlement, enhanced end-to-end data and additional platform services will provide instant and seamless service across SWIFT's network of 4 billion accounts in more than 200 countries.

It is noted that in 2021 SWIFT has increased the speed and transparency of small value payments, minimised delays through pre-validation of payments and provided banks with tools to quickly obtain extensive data in a multi-format environment. The company has also been involved in experiments to integrate central banks and new digital assets into cross-border digital currency flows, as well as to test the concept of real-time market infrastructure interconnectivity.