Daily Gold Market Report

From Experiment to Reality:
SWIFT’s Ambitious Plan for a CBDC-Connected Financial System

(USAGOLD – 3/26/2024) Gold prices are stronger in early trading on Tuesday. Gold is trading at $2188.03, up $16.20. Silver is trading at $24.0, up 2 cents. SWIFT, the global bank messaging network, is planning to launch a new platform within the next 12 to 24 months to integrate central bank digital currencies (CBDCs) with the existing financial system. This development is significant for the emerging CBDC ecosystem, as SWIFT plays a crucial role in global banking. With approximately 90% of the world’s central banks exploring digital currencies to keep pace with cryptocurrencies, SWIFT’s innovation head, Nick Kerigan, revealed that their recent trial, which included a diverse group of central banks and financial institutions, aimed to ensure interoperability of different CBDCs and reduce payment system fragmentation. The trial also explored the use of CBDCs in complex transactions and the potential for automation to enhance speed and reduce costs. The successful trial outcomes have set a timeline for SWIFT to move from experimental to practical application. SWIFT’s network, which connects over 11,500 banks and is used in over 200 countries, positions it advantageously for the CBDC rollout, despite the possibility of delays in major CBDC launches. The platform is expected to offer a scalable solution for digital asset payments, aligning with predictions that $16 trillion in assets could be tokenized by 2030.