Features TheBitTimes.com

SWIFT, the world’s dominant international bank wire network, plans to support a new type of Central Bank Digital Currency, a so-called interlinking CBDC. Three central banks are beta testing interlinking CBDCs, along with 30 other financial institutions. Interlinking CBDCs will use the SWIFT network’s interoperability system, which is currently in the second phase of beta testing. Through interlinking CBDCs, as opposed to forex or over-the-counter (OTC) currency transactions, SWIFT hopes to facilitate the direct conversion of value between fiat and without the need for third-party custody of funds. In contrast to the initial versions of CBDCs, interlinking CBDCs will allow SWIFT network participants to execute swaps and other currency transfers seamlessly over SWIFT’s messaging system. Central banks experimenting with SWIFT’s beta version of interlinking CBDCs include the Hong Kong Monetary Authority and the National Bank of Kazakhstan. Other central banks using sandboxed (nonfunct...

Explore a brief history of digital banking, tracing its evolution from early automation to the integration of new technologies, such as IoT and blockchain. Digital banking, also known as online banking or e-banking, refers to the delivery of financial services through digital channels such as the internet, mobile devices and automated teller machines (ATMs). Digital banking has become increasingly popular in recent years, but its origins can be traced back several decades. Here’s a brief history of digital banking. Early automation (1960s to 1980s) The first forms of digital banking can be traced back to the 1960s, when banks began using mainframe computers to automate various banking functions such as check processing and customer account management. In the 1980s, banks started offering dial-up services that allowed customers to access their accounts through their home computers. In the 1960s, Bank of America introduced the first ATM, which allowed customers to withdraw cash from the...