Megha

SWIFT, also known as the Society for Worldwide Interbank Financial Telecommunications, is planning to launch a Central Bank Digital Currency (CBDC). This move is significant for the emerging CBDC ecosystem, given SWIFT's central role in global banking. The purpose of SWIFT's new CBDC platform is to connect the new CBDCs with the existing financial system, highlighting the growing popularity of digital currencies among central banks worldwide. A recent trial involving 38 central banks and commercial banks focused on ensuring interoperability between different countries' CBDCs, even if built on different underlying technologies. Key features and functions of a CBDC may include digital wallets, peer-to-peer transactions, cross-border payments, financial inclusion, and strong privacy and security measures. SWIFT recognizes the need to navigate complex regulatory landscapes associated with CBDC projects and will comply with the rules governing the issuance and use of CBDCs.