RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
SWIFT, the global financial messaging network, and over 30 international banks have launched an initiative to make cross-border payments instantaneous. The collaboration aims to modernize international bank transactions using blockchain technology and support new forms of digital money.
Key Features of the Initiative
- Blockchain-Based Shared Ledger:
- Banks will use a secure, real-time distributed ledger to record, sequence, and validate transactions.
- Smart contracts will enforce rules automatically, improving efficiency and reducing errors.
- Real-Time 24/7 Payments:
- Cross-border payments can be made instantly instead of taking several days.
- Potential for lower transaction costs compared to traditional payment systems.
- Support for New Forms of Digital Money:
- Integration with stablecoins, tokenized bank deposits, and central bank digital currencies (CBDCs).
- Ensures interoperability with emerging digital payment systems globally.
- Global Reach:
- SWIFT network connects 11,000+ banks across 200+ countries, handling trillions of dollars daily.
- Initiative leverages this existing infrastructure while adding blockchain functionality.
Participating Institutions
- Major global banks involved include:
- JPMorgan, HSBC, Deutsche Bank, MUFG, BNP Paribas, Santander, OCBC
- Banks from the Middle East and Africa are also participating.
- Collaboration aims to design and build the shared digital ledger collectively.
