As financial institutions and think tanks work overtime to create new financial platforms using blockchain technology, one of the most unlikely of these announced on Jan. 12 that it is in the planning stages of creating a process to function in cross-border payments using the global reserve currency.
Known as SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, it is the network that facilitates the exchanging of the world's currencies for dollars to aid in the function of global trade and commerce. And in a release made on Wednesday the institution reported that they are planning on using blockchain technology to replace older infrastructures in their processes of servicing the global reserve currency.
A global platform that connects the vast majority of the world's banks has begun building a blockchain application to simplify cross-border payments.
Announced today, The Society for Worldwide Interbank Financial Telecommunication (Swift) is integrating open-source blockchain technology with its own products to build a proof-of-concept that might one day replace the so-called "nostro" accounts it keeps filled with cash all over the world – just in case they need it.
If successful, the blockchain application has the potential to finally achieve a longstanding dream of Swift, to free up the cash stored in those accounts so it can be invested in more profitable measures. - Coindesk