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SWIFT’s Managing Director: We don’t think DLT or blockchain is the answer to every problem




SWIFT's Managing Director: "We don't think that DLT or blockchain is the answer to every problem"
Source: Unsplash

Lisa O’Connor, the Managing Director of Asia Pacific at SWIFT, spoke about the company’s stance on Distributed Ledger Technology or blockchain technology, in an interview with Ran Neuner for CNBC Crypto Trader.

The Managing Director began the interview by briefly speaking about the core role of SWIFT. SWIFT, aka Society for Worldwide Interbank Financial Telecommunications, is one of the largest payment messaging networks around the world, enabling instant payments via a standardized system of codes.

O’Connor was asked whether the main role of SWIFT was bank-to-bank foreign exchange transfer. She stated that the organization was “much larger” than just bank-to-bank foreign exchange transfer, adding that it was, in fact, a corporation with over 11,000+ members globally. She further stated that these members were a collaboration of banks, brokers, asset managers, and corporates. She said,

“We’re owned by those members which is what makes this a cooperative by nature. we are also the registration authority for the way that financial institutions speak to each other called ISO. so ISO is the standard.”

This was followed by the Managing Director speaking about SWIFT using blockchain or Digital Ledger Technology [DLT]. She stated that SWIFT is “selectively looking at the use” of DLT.

The managing director went on to say,

“So, they’re looking at how do they leverage DLT for certain business problems. We don’t think that DLT or blockchain is the answer to every problem, what we like to do first is look at the problem and then apply the right technology as the solution.”

O’Connor stated that the firm was looking into using DLT/ blockchain solutions for proxy voting in Singapore, which, according to her, “is a big industry challenge.” She further added that SWIFT worked with large market infrastructures such as the Australian Stock Exchange, which is using DLT solutions for their new clearing and settlement system. She added,

“[…] hat we would like to be in the future is a platform that helps to connect our members up to the best of these blockchain solutions. so we’re working with for example R3 who’s been doing a lot of work as it relates to trade finance and how do we link together that trade finance value chain to the payment value chain that underpins at all.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.