September 18, 2020

SWIFT will use blockchain in the banking ecosystem

SWIFT will use blockchain in the banking ecosystem

SWIFT has released a new document, Payments: A Look into the Future (Payments: Looking into the future), which confirms SWIFT’s intentions to use blockchain to provide a more open model of financial services and applications in the banking ecosystem.

We do not think that problems around international payments should be solved with the help of closed systems.

Banks know that they must not stand still. They need to adapt their own payment support systems. The landscape of international payments is no different ... Goods and services move faster and over long distances than before. From account to account, in an instant. Only a hassle-free and open global value transfer system can do this.

In anticipation of a successful verification of the concept with the R3 trading platform, we will also soon include payments through global payment innovations (GPI) on DLT-based trading platforms, the document says.

GPI is SWIFT's answer to all blockchains thathave arisen in recent years. This is an action plan to achieve SWIFT's ultimate goal: instant, uncensored, global, round-the-clock payments from any bank account to any other bank account. And now, after a series of tests, it is confirmed that it will be based on blockchain.

This future is within reach. Elements are already implemented, technologies are available, and the SWIFT community is moving towards this. Leading participants have ambitions and a desire to realize this goal. The coalition of comers is moving forward with change, making the future a reality sooner than might be expected, says SWIFT.

SWIFT also announced that it will use a public blockchain ecosystem in which banks can create and release their own applications for the benefit of consumers.

It will be something similar to decentralized finance in the banking interpretation.

Thanks to leading positions in the field of domesticresearch and development, we introduce innovations and use technology for a real purpose: to improve solutions and solve industry problems. We are transforming the existing system to provide unprecedented convenience while maintaining versatility and security. This means using proven and Promising technology to make travel as easy as possible for customers around the world, ”emphasizes SWIFT.

Less than a week after Facebook and other companies gave their blockchain approval, SWIFT did the same on behalf of its client banks.