SWIFT Releases Plan for Digital Currency
2022-10-11
LRC
TXT
大字
小字
滚动
全页
1Financial messaging system SWIFT has released plans for a worldwide central bank digital currency (CBDC) network.
2The plan is the result of eight months of tests using different technologies and currencies.
3SWIFT's tests looked at how CBDCs could be used internationally and changed into traditional money if needed.
4For the last month, the trial has involved France and Germany's central banks and international banks like HSBC, Standard Chartered and UBS.
5Around 90 percent of the world's central banks are now using, testing, or studying CBDCs.
6Reuters reports that they are struggling with its technological complexities.
7Nick Kerigan is SWIFT's head of innovation.
8He described SWIFT's plan as a bicycle wheel in which 14 central and business banks are connected to a central point, its main hub.
9The tests will be followed by additional testing over the next year.
10The idea is that once the plan is in place, banks may need only one main international connection rather than thousands of connections with each partner
11Kerigan said, "We believe that the number of connections needed is much fewer."
12He said this would likely mean that there will be fewer breaks in the chain and that it will likely be more efficient.
13However, CBDCs have also raised concerns about privacy and central control of private financial dealings.
14SWIFT's trial also tested a group of different CBDC technologies known as Distributed Ledger Technologies.
15But, the use of many different technologies presents a barrier to quickly putting the plan into effect around the world.
16A separated trial was carried out with financial companies Citi, Clearstream and Northern Trust.
17It involved "tokenization."
18"Tokenization" is a measure used to secure sensitive information.
19The test aimed to use digital "tokens" to trade property like stocks and bonds.
20Some countries such as the Bahamas and Nigeria say they already have CBDCs.
21China has been developing a digital currency called the e-yuan.
22And Reuters says the Bank for International Settlements has also been running cross-border trails.
23SWIFT says it is in a good position because it has an existing network used in over 200 countries and connects more than 11,500 banks and funds.
24SWIFT is a member-owned cooperative group based in Belgium.
25It gained attention after it cut most of Russia's banks from its network to punish Russia for invading Ukraine.
26Kerigan said a new CBDC system could also bar countries from taking part in it.
27But he did not know whether it would stop countries from joining one.
28He said most central banks want to provide CBDC for the people, the businesses, and the organizations in their areas.
29He added, "So a solution that's fast and efficient and that gains access to as many other countries as possible would seem to be an attractive one."
30I'm Gregory Stachel.
1Financial messaging system SWIFT has released plans for a worldwide central bank digital currency (CBDC) network. 2The plan is the result of eight months of tests using different technologies and currencies. 3SWIFT's tests looked at how CBDCs could be used internationally and changed into traditional money if needed. For the last month, the trial has involved France and Germany's central banks and international banks like HSBC, Standard Chartered and UBS. 4Around 90 percent of the world's central banks are now using, testing, or studying CBDCs. Reuters reports that they are struggling with its technological complexities. 5Nick Kerigan is SWIFT's head of innovation. He described SWIFT's plan as a bicycle wheel in which 14 central and business banks are connected to a central point, its main hub. The tests will be followed by additional testing over the next year. 6The idea is that once the plan is in place, banks may need only one main international connection rather than thousands of connections with each partner 7Kerigan said, "We believe that the number of connections needed is much fewer." He said this would likely mean that there will be fewer breaks in the chain and that it will likely be more efficient. 8However, CBDCs have also raised concerns about privacy and central control of private financial dealings. 9SWIFT's trial also tested a group of different CBDC technologies known as Distributed Ledger Technologies. But, the use of many different technologies presents a barrier to quickly putting the plan into effect around the world. 10A separated trial was carried out with financial companies Citi, Clearstream and Northern Trust. It involved "tokenization." "Tokenization" is a measure used to secure sensitive information. The test aimed to use digital "tokens" to trade property like stocks and bonds. 11Some countries such as the Bahamas and Nigeria say they already have CBDCs. China has been developing a digital currency called the e-yuan. And Reuters says the Bank for International Settlements has also been running cross-border trails. 12SWIFT says it is in a good position because it has an existing network used in over 200 countries and connects more than 11,500 banks and funds. 13SWIFT is a member-owned cooperative group based in Belgium. It gained attention after it cut most of Russia's banks from its network to punish Russia for invading Ukraine. 14Kerigan said a new CBDC system could also bar countries from taking part in it. But he did not know whether it would stop countries from joining one. 15He said most central banks want to provide CBDC for the people, the businesses, and the organizations in their areas. 16He added, "So a solution that's fast and efficient and that gains access to as many other countries as possible would seem to be an attractive one." 17I'm Gregory Stachel. 18Marc Jones reported this story for Reuters. Gregory Stachel adapted it for VOA Learning English. 19_______________________________________________________________________ 20Words in This Story 21digital - adj. using or characterized by computer technology 22currency - n. the money that a country uses 23innovation - n. the act or process of introducing new ideas, devices, or methods 24chain - n. a series or group of things or people that are connected to each other in some way 25efficient - adj. capable of producing desired results without wasting materials, time, or energy 26fund (mutual fund) -n. an investment that contains many different kinds of securities that is supervised by financial experts 27access - n. a way of being able to use or get something 28attractive - adj. having a feature or quality that people like 29_______________________________________________________________________ 30What do you think of the use of digital currencies? 31We want to hear from you. We have a new comment system. Here is how it works: 32Each time you return to comment on the Learning English site, you can use your account and see your comments and replies to them. Our comment policy is here.