On Sept 12th, SWIFT just announced new efforts to explore how traditional banking can work with new technologies like tokenized assets and CBDCs.
Tokenized assets are like digital versions of real-world things, such as stocks or bonds, but they exist only online. CBDCs are digital versions of a country’s money, like a digital dollar. Let’s explore more about these new Digital Asset Plans from SWIFT.
SWIFT’s Digital Asset Plans: Bridging New Tech and Traditional Finance
SWIFT wants to see how these new technologies can fit into the world of traditional finance. So, one important part of SWIFT’s plans is to focus on regulated environments. This means they want to make sure that everything they do with digital assets follows the rules and laws that keep financial systems safe.
SWIFT is not just talking about any technology. They’ve specifically mentioned Ethereum as the only Layer 1 blockchain in their plans. By focusing on Ethereum, SWIFT is showing that they believe this blockchain has a lot to offer when it comes to handling digital assets.
We’re paving the way towards real-world solutions that will enable our members to transact interchangeably with regulated #DigitalAssets and currencies on the Swift network.
👉 Discover what’s next on this exciting journey: https://t.co/SUwRPAtcdg#DigitalCurrencies #innovation pic.twitter.com/SPn0caIHgJ
— Swift (@swiftcommunity) September 11, 2024
In their experiments, SWIFT is looking at how well traditional banking systems can work with these new technologies. Also, SWIFT wants to make sure that digital assets can fit into existing financial systems without causing too many bumps in the road.
This effort is all about creating a bridge between old and new finance. SWIFT hopes that by exploring these new technologies in a regulated way, they can help make the future of finance smoother and more secure.
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