SWIFT Partners with Consensys to Build Blockchain Ledger
SWIFT, the global network for secure financial messaging, announced a new project with Consensys. They will create a blockchain-based ledger to enable real-time, 24/7 cross-border payments. This ledger aims to improve security and trust in international money transfers.
Details of the Blockchain Payment System
- Consensys will build a prototype that uses smart contracts to validate transactions.
- The ledger will record, sequence, and verify transactions automatically.
- Over 30 financial institutions from 16 countries are involved in testing the system.
- SWIFT will support banks in adopting this new infrastructure.
- The system will work with existing and new payment networks.
- SWIFT will not decide which tokenized assets banks transfer; that is up to the banks and central banks.
SWIFT’s CEO, Javier Pérez-Tasso, said the ledger will help financial institutions improve payments using SWIFT’s trusted platform. The project aims to reduce costs, speed up transfers, and increase transparency by cutting out intermediaries.
Challenges and Future Plans
SWIFT faces criticism for slow cross-border payments and high fees. This blockchain ledger could solve these issues by automating processes with smart contracts. After the prototype phase, SWIFT plans to expand testing to more banks before a full launch.
