New technologies, changing customer expectations, emerging players and evolving business models are driving tectonic shifts in the payments landscape, according to SWIFT and Accenture.
In a new paper on central bank digital currencies (CBDCs) in cross-border payments as part of broader digital asset innovation, SWIFT and Accenture explain that a potential outgrowth of this disruptive force is a new take on the form of traditional money itself.
As more than half the world’s central banks are actively exploring the use of CBDCs, the paper aims to help the financial community prepare for the possibility of moving payments in new forms of currency internationally.
SWIFT says CBDCs are drawing strong interest as central banks explore ways to improve digital commerce, reinforce systemic resilience and preserve the foundational role of fiat money in global finance.
While there are many complex issues to be considered with care, and as the topic of CBDCs evolves over the next few years, SWIFT says it will engage closely in the debate.
According to Thomas Zschach, chief innovation officer, SWIFT, making payments infrastructure based on CBDCs efficient and interoperable with the broader economy presents some new challenges, but the majority are the same as those faced by existing payment solutions.
As a co-operative that is neutral and currency agnostic, with reach across 11,000 institutions in more than 200 countries, and oversight by central banks globally, Zschach explains SWIFT is well placed to engage closely in the debate and any future evolution of money.
He comments: “We look forward to actively supporting our community on issues related to CBDCs and driving responsible innovation aligned with our strategic vision for instant end-to-end transactions.”
Meanwhile, David Treat, a senior managing director at Accenture, who leads its blockchain and multi-party systems practice globally, notes that CBDC has emerged as an important new tool in the global push to modernise financial infrastructure to meet the needs of our increasingly digital and connected world.
He concludes: “As an integral part of the financial services infrastructure, SWIFT plays a critical role in illustrating the possible strategic moves its members may undertake as CBDC begins to transform the financial services landscape. We welcome this partnership and are eager to continue to drive responsible and valuable innovation together."
