1. Aiwaka AdventuresHome
  2. Tech Trends

Swift President Yang Wen sees great potential in CBDC for cross-border transactions, emphasizes collaboration and interaction

• Tech Trends • 88 views

According to reports, Yang Wen, president of Swift China, said in an interview that CBDC was regarded as the next generation currency with great potential in c…

Swift President Yang Wen sees great potential in CBDC for cross-border transactions, emphasizes collaboration and interaction

According to reports, Yang Wen, president of Swift China, said in an interview that CBDC was regarded as the next generation currency with great potential in cross-border transactions. CBDC can play an important role in the field of cross-border payment, but if it is to give full play to its potential, the interaction between different CBDC systems and existing non-CBDC payment infrastructure is crucial. To give full play to the potential of CBDC in cross-border transactions, the collaboration of the global financial community is another key element. The market needs an environment that allows all parties of the financial community to participate, test and cooperate with customers in an open and innovative way. To this end, Swift built a CBDC sandbox and visual interface. It is reported that 18 institutions around the world, including central banks, market infrastructure and commercial banks, are using the sandbox to evaluate potential use cases and broader CBDC interactivity.

President of SWIFT China: CBDC can play an important role in cross-border payment

Analysis based on this information:


The president of Swift China, Yang Wen, has expressed optimism about the potential of Central Bank Digital Currencies (CBDCs) in the field of cross-border transactions. In an interview, he emphasized the importance of collaboration and interaction among different CBDC systems and existing non-CBDC payment infrastructure, along with the involvement of the global financial community in creating an open and innovative environment for testing and cooperation.

CBDCs have been emerging as a new type of digital currency that can be issued and backed by central banks, with potential benefits such as faster and cheaper payments, greater financial inclusion, and improved transparency and security. However, their success depends on their ability to overcome various challenges and limitations, particularly in cross-border contexts where different currencies, regulations, and infrastructures can pose obstacles to seamless and efficient transfers.

According to Yang, one of the key factors for realizing the potential of CBDCs in cross-border transactions is the need for interaction and interoperability among different systems and platforms. In other words, CBDCs should be able to communicate and exchange value with other payment systems, both CBDC-based and non-CBDC-based, in a seamless and secure manner. This requires technical standards, protocols, and interfaces that can ensure interoperability and avoid fragmentation.

To facilitate this process, Swift has built a CBDC sandbox and visual interface that allows various institutions, including central banks, market infrastructure, and commercial banks, to test and evaluate potential use cases and broader CBDC interactivity. The sandbox currently has 18 participants from around the world, representing different regions and contexts.

However, Yang also stressed that collaboration and interaction are not only technical requirements but also social and institutional ones. The involvement of the global financial community, including regulators, policymakers, and other stakeholders, is crucial for creating an open and innovative environment that fosters experimentation, learning, and feedback. This means that CBDCs should not be seen as a competitive or exclusive solution but rather as a complementary and interoperable one that can enhance the overall efficiency and resilience of the payment ecosystem.

In conclusion, Yang’s interpretation of the potential of CBDCs for cross-border transactions highlights the importance of collaboration and interaction, both at the technical and social levels. The sandbox and visual interface developed by Swift can serve as a platform for testing and evaluating CBDC interoperability, but the success of CBDCs ultimately depends on the participation and cooperation of the global financial community.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/21/swift-president-yang-wen-sees-great-potential-in-cbdc-for-cross-border-transactions-emphasizes-collaboration-and-interaction/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/21/2023 14:23
Next 02/21/2023 14:35

Recommended articles