In a recent interview with the 21st Century Business Herald, Wen Yang, President of SWIFT China, discussed the challenges and potential solutions for achieving interoperability among cross-border central bank digital currencies (CBDCs).
Yang highlighted that different economies are adopting various technological approaches and standards, which has led to fragmentation in CBDC systems and the risk of creating isolated “data silos.”
Yang said, “Currently, there are significant differences in the technological paths and standards, including protocols, among economies, which presents a ‘fragmentation’ challenge and leads to ‘data silos’.”
Yang added, “To date, 11 countries have fully launched their CBDCs, while others are in later stages of development.”
Yang noted that over 130 economies are currently exploring CBDCs, with nearly 70% of central banks planning to issue them within the next decade. However, the rapid pace of development raises concerns about systems being unable to communicate with each other.
China’s digital yuan has already been integrated into various applications, while the European Central Bank is working on launching a digital Euro. In India, commercial banks are processing one million digital rupee transactions daily nationwide.
Yang mentioned that SWIFT plans to broaden its CBDC connector solution to test more extensive use cases in a comprehensive environment. This would include improving support for on-chain forex settlements and cross-border payments to meet growing market demands.
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