The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a major world banking payments network, has announced to introduce a Proof-of-Concept (POC) of access titled GPI Link. It will allow Blockchain-based Company R3 to connect SWIFT’s Global Payment Innovation (GPI) from its platform.
Thus, SWIFT has made another step toward adopting Blockchain, regardless of having addressed issues over the technology’s maturity within the past. Though, SWIFT’s competitors have already expressed their issues, said that the new system isn’t decentralized enough. In the year 2016, SWIFT and Accenture, a world consulting services issued a joint report that explored the use of distributed ledger technologies (DLT) in money services. The paper, particularly, accredited some powers of the Blockchain, such as traceability, propagation, simplified reconciliation, sure system and high resiliency. The report further highlighted that the technology wasn’t grown enough to be utilized on an industry level. SWIFT and Accenture, additionally, argued that the technology lacked restrictive compliance, an identity framework, standardization, cyber defense, and measurability. A year later in 2017, SWIFT announced that it was intended to utilize the HyperledgerFabric v one.0.A permission Blockchain framework hosted by the UNIX Foundation to modernize its practices of cross-border market payments.
Therefore, the company tested the PoC, whether or not DLT will make cross-border payments further economical, clear and fast. It became a part of SWIFT’s larger initiative to expand transparency and traceability of its cross-border payments through its GPI service, introduced earlier in February 2017. Considerably, GPI ensures faster the same day use of funds which typical international payments take 3 to 5 operating days to come to an end.