SWIFT Collaborates with Leading Banks on Blockchain Ledger for Cross-Border Transactions
In a groundbreaking move, SWIFT, the global payments network, is joining forces with over 30 prominent financial institutions to create a blockchain-based ledger. This collaborative effort, in partnership with Consensys, aims to revolutionize the cross-border payment landscape by offering 24/7 real-time transaction capabilities.
Transforming Global Payments with Blockchain Technology
According to a recent announcement, SWIFT, formally known as the Society for Worldwide Interbank Financial Telecommunication, is working on integrating a blockchain ledger into its robust infrastructure. As a Belgium-based cooperative, SWIFT connects over 11,500 institutions across more than 220 countries, facilitating approximately $150 trillion in international transactions annually. By leveraging blockchain technology, the organization is poised to enhance its services, aligning with the digital transformation of the financial industry.
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The new ledger system, fueled by blockchain—the same innovative technology that supports cryptocurrencies such as Bitcoin—will enable seamless, around-the-clock cross-border payments. This initiative is currently in collaboration with major global banks and is being developed from a prototype designed by Consensys, a notable blockchain software company founded by Ethereum co-founder Joseph Lubin.
SWIFT’s Vision for the Future of Payments
Javier Pérez-Tasso, CEO of SWIFT, emphasized the transformative potential of this initiative, stating, “Through this initial ledger concept, we are paving the way for financial institutions to elevate the payments experience, with SWIFT’s proven and trusted platform at the heart of the industry’s digital evolution.”
Feedback from banks across 16 countries is being incorporated into the development of the ledger system. Upon successful completion, SWIFT plans to collaborate with its global network for widespread implementation. Key players already engaged in this initiative include several Global Systemically Important Banks (G-SIBs) such as JPMorgan Chase, Bank of America, and Citigroup.
Driving Innovation in Cross-Border Payments
Gayathri Vasudev, Global Head of Core Payment Rails at JPMorgan, shared her enthusiasm: “We are eager to collaborate with this coalition to assess a shared ledger designed for the next generation of global payments, utilizing our expertise to enhance instant, secure, and efficient cross-border transactions.”
SWIFT’s strategy also includes adding interoperability features, allowing seamless transitions between traditional fiat rails and emerging digital systems. The organization is committed to delivering a superior payments experience, regardless of the medium of value transfer.
“These developments form a crucial part of SWIFT’s strategy to deliver an exceptional payments experience, enhancing existing ‘fiat’ rails while preparing the industry for the era of digital finance,” the payments messaging platform stated.
Bitcoin’s Price Recovery and Market Implications
In recent market movements, Bitcoin has shown signs of recovery after a sharp decline last week. The cryptocurrency started the new week on a positive note, with its value rebounding to $112,300. This upward trend has led to significant liquidations of bearish positions across derivatives exchanges.
The data on recent liquidations underscore the volatility and rapid shifts in the cryptocurrency market, highlighting the potential for both risks and opportunities for investors.
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