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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...

Changchun Mu, an executive from the People’s Bank of China (PBOC), stated that the digital yuan needs to be available in retail scenarios. According to the local source Paper, Mu explained at a trade forum in Beijing that the central bank digital currency (CBDC) should be available on different wallet providers like Alipay and WeChat, as well as various bank providers and other payment providers like e-CNY operators. Mu added that the first step in the evolution process towards the digital yuan would be to start using it as a payment tool. He said that from a technical perspective, they could begin unifying QR code standards to achieve barcode interoperability. You might also like: China’s digital yuan hits $250 billion in transactions The People’s Bank of China has been developing the e-CNY and launched a pilot app in January 2022. After the digital yuan beta test in late 2019, the institution tested the CBDC in 26 locations in 17 provincial-level cities and regio...

The Australian digital dollar was used in a trade for a U.S. dollar stablecoin using an Ethereum layer 2 blockchain. Australia has successfully made its first foreign exchange transaction using eAUD as part of a live pilot for the country’s potential central bank digital currency (CBDC). It comes amid a rising interest from countries around the world to learn about or launch central bank-issued digital currencies. In a statement, blockchain infrastructure provider Canvas said on May 17 local time, crypto fund managers DigitalX and TAF Capital traded eAUD against the stablecoin USD Coin (USDC). Canvas reported the transaction was settled instantly and touted it as a success over what it called the “slow, expensive and prone to errors” traditional FX and remittance networks. The FX trade was part of a series of tests currently underway as the country explores possible use cases for a CBDC. The pilot program was launched by the Reserve Bank of Australia (RBA) in conjunction with the fin...

Governor Ron DeSantis of Florida has earlier publicly endorsed proposed legislation that seeks to outlaw the use of central bank digital currency ( CBDC ) in the state. The governor has specifically expressed his intention to introduce a bill that would prevent CBDC s from being used as a medium of exchange within the state. However, the bill might possibly need a revision, as it could unintentionally ban Bitcoin in the state. Also read: Binance BUSD Stumbles Under Regulatory Pressure: $500 Million Outflows Source: Tampa Bay Times Florida CBDC ban bill might need revision The bill laid out by Governor Ron DeSantis passed in the House Commerce Committee, 15-5 in favor of the bill. DeSantis was generally against the idea of a digital currency being controlled by the government. But the key issue with the bill is that it defines CBDC s as digital currencies that are validated by a foreign government. Bitcoin’s legal status is subject to interpretation by lawmakers,...