Crypto network SWIFT has laid out its blueprint for a global central bank digital currency (CBDC) network after an eight-month trial period.
The experiment, which looked at different technologies and currencies, involved France and Germany’s central banks as well as worldwide lenders like HSBC, Standard Chartered and UBS.
It examined how CBDCs could be widely used globally and potentially even converted into fiat currency if needed.
The idea is that once scaled up, lenders may just need one global connection instead of hundreds or thousands if they had set them up with each counterpart individually.
SWIFT's head of innovation Nick Kerigan commented: "We believe that the number of connections needed is much fewer.
"Therefore, you are likely to have fewer breaks [in the chain] and you are likely to achieve greater efficiency."
Approximately 90% of the world’s central banks are either using or examining CBDCs, with them not wanting to be left behind by cryptos and other digital assets.
Nigeria and The Bahamas, for example, already have CBDCs running, while China is advanced with trials of an e-yuan.
Central bank umbrella group, the Bank for International Settlements, has also been operating multinational trials.
SWIFT, however, already has an existing network that is usable in more than 200 countries, connecting over 11,500 lenders and funds.
Kerigan added: "Ultimately what most central banks are looking to do is to provide us with a CBDC for the people, the businesses and the organisations in their jurisdiction.
"So a solution that's fast and efficient and that gains access to as many other countries as possible would seem to be an attractive one."
The experiment tested various CBDC technologies called distributed ledger technologies.