Global payments network Society for Worldwide Interbank Financial Telecommunication (Quick) is partnering with French consultancy Capgemini to conduct new experiments and test how domestic central bank digital currencies (CBDCs) could be interlinked, taking the next phase toward mix-border payments utilizing such currencies.
“Facilitating interoperability and interlinking between different CBDCs being developed all over the world is going to be critical as to completely understand their potential,” stated Thomas Zschach, Chief Innovation Officer at Quick, as quoted inside a statement.
Zschach noted the global CBDC ecosystem today risks becoming fragmented considering that “ numerous central banks” are presently developing their very own digital currencies according to different technologies, standards, and protocols.
Quick launched its first experiments with CBDCs in 2021, trying to show the instalments network could effectively do a mix-border transaction between one entity on the distributed ledger technology (DLT)-based CBDC network an additional entity running on the real-time gross settlement (RTGS) system.
In the new group of experiments, Quick aims to consider its capacities one stage further by testing how its network can interlink the multiple domestic-based CBDC systems from around the globe. Quick states its objective would be to make mix-border payments involving CBDCs more seamless and frictionless for that network’s users.
The network sees that not every CBDCs will adopt exactly the same technology, considering that some national platforms are now being built by using a centralized architecture while some derive from DLT. With this thought, Quick really wants to test the way it can interlink, CBDC platforms in a network level, whatever the technology they will use, using the world’s existing payments systems with the Quick platform.
“Navigating decentralisation is complex with lots of technology choices, operating models, and policy factors,” stated Sudhir Pai, Chief Technology & Innovation Officer for that Global Financial Services business at Capgemini. “Our well-defined taxonomy helps us accelerate our efforts to construct CBDC interlinks with Quick,” Pai claimed, adding: “We expect to carry on to collaborate in building industry standards and frameworks with Quick.”