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SWIFT, the global financial messaging network, is aiming to create a new platform to connect central bank digital currencies to the existing finance system in the next 1-2 years, its head of innovation Nick Kerigan told Reuters.
"We're looking at a roadmap to productize in the next 12-24 months," said Kerigan. "It's moving out of experimental stage towards something that is becoming a reality."
His statements followed the latest sandbox testing's results for SWIFT's CBDC interlinking solution, which was done over the last six months and involved 38 institutions.
"Our solution has the potential to simplify and speed up trade flows, unlock growth in tokenized securities markets, and enable efficient FX settlement," said SWIFT.
Participants in the sandbox included central banks of Australia, France, Germany, and Singapore, as well as commercial banks such as Citibank (C), HSBC (HSBC), Deutsche Bank (DB), ANZ (OTCPK:ANZGY), and DBS (OTCPK:DBSDF).
SWIFT is now planning to extend the solution to support a wider range of emerging digital networks, such as platforms for tokenized deposits.
Sabih Behzad, head of Digital Assets & Currencies Transformation at Deutsche Bank (DB), said SWIFT's solution is a significant step to overcoming fragmentation and ensuring frictionless transactions.
As many as 134 countries are exploring CBDCs, with over half in advanced or pilot stages of development, according to think tank Atlantic Council. However, progress in the U.S. has stalled, with Federal Reserve Chair Jerome Powell saying there are no plans yet for a CBDC.