The global financial landscape is poised for a significant shift with SWIFT’s imminent launch of a Central Bank Digital Currency (CBDC), set to roll out in the next 12 to 24 months. This development could present a formidable challenge to the BRICS nations, which are also in the process of developing their own digital currency.
SWIFT, a cornerstone of international banking transactions, is preparing to disrupt the financial system with its new CBDC. According to Nick Kerigan, SWIFT’s Head of Innovation, the forthcoming CBDC represents a major transformation in the Western financial system, aiming to reshape the dominance of the US dollar.
Kerigan has revealed that the SWIFT CBDC has completed a successful six-month trial with a broad range of participants, marking it as the largest global initiative in the realm of CBDCs and tokenized assets. This progress suggests that the SWIFT CBDC could be deployed ahead of the BRICS digital currency, potentially gaining a swift foothold in the global financial market.
The timing of SWIFT’s CBDC launch poses a direct threat to BRICS‘ goals of reducing reliance on the US dollar. If SWIFT’s CBDC gains widespread acceptance, it could significantly hinder BRICS’ efforts to promote dedollarization and establish their own financial infrastructure.
In conclusion, the competition between SWIFT’s CBDC and the BRICS digital currency will be crucial in shaping the future of international finance. The outcome of this contest will likely influence global monetary dynamics for years to come.
