SWIFT will probably not exist in 5 years: Mastercard CEO

SWIFT will probably not exist in 5 years: Mastercard CEO – Mail Bonus

Michael Miebach, CEO of Mastercard, said on Tuesday that he does not expect SWIFT, one of the most widely used cross-border fiat platforms, to emerge in five years.

Miebach spoke at a panel discussion on digital currency central banks (CBDCs) as part of the Blockchain Central Davos Global Blockchain Business Council (GBBC) conference, which hosted the World Economic Forum 2022 in Davos, Switzerland.

Towards the end of the panel discussion, when the moderator asked each participant if they thought SWIFT would still exist in five years, Miebach gasped at the audience after answering “no”, according to a Cointelegraph reporter who attended the meeting. .

The response was not expected in light of his position at Mastercard and the committee members before him, including Jon Frost, chief economist at the Bank of International Settlements, and Jennifer Lassiter, executive director of the Digital Dollar Project, an agency tasked with investigating United. The CBDC state had answered in the affirmative.

Other committee members who followed Miebach also took a positive view, including Yuval Rooz, CEO of Digital Asset, a data technology company, and David Treat, director of Accenture and co-manager of the blockchain business.

The Cointelegraph contacted Miebach immediately after the panel discussion, but was denied further comments on the matter.

A spokesman for Mastercard later downplayed Miebach’s comments in an email:

“Let us clarify the intention with the comment on the stage, as it is not as simple as a yes or no answer. Michael was simply reinforcing what SWIFT has said before – their business continues to evolve. Its current form will not be the same in the future. They are adding more functionality and bypassing being just a messaging system.

SWIFT delivered 42 million messages a day last year, but online transactions can take several days to complete. The company has sought to maintain its importance in the global economy, especially with regard to CBDCs.

To this end, SWIFT has been exploring the use of CBDC to facilitate seamless cross-border payments since May 2021 when it published a joint paper with Accenture examining how digital currencies can help with cross-border payments.

Related: WEF 2022: Blockchain community breaks stereotypes in Davos

On 19 May 2022, SWIFT announced the second round of its CBDC experiments, in collaboration with French IT company Capgemini to explore the connection of domestic CBDCs to facilitate seamless cross-border payments.

Coin Telegraph reporters on the ground in Davos noted that at another panel meeting entitled “Guidelines for the Digital Economy,” Miebach spoke about the role the regulation can play in reducing unnecessary noise around new technologies such as cryptography.

“Not everyone is screaming for regulation, but it is reducing noise in the world of cryptocurrencies. “I am optimistic about taking an active part in the regulators and being orderly,” he said.