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Mastercard CEO: SWIFT system will be replaced by central bank digital currency within five years

With the increasing importance of blockchain technology in the financial market, it has become a major focus at this year's World Economic Forum.

Recently, Michael Miebach, CEO of Mastercard, stated during a panel discussion initiated by the Global Blockchain Business Council at the World Economic Forum that with the popularity of Central Bank Digital Currencies (CBDCs), SWIFT may no longer exist within five years.

Currently, almost all major central banks in the world are implementing digital currency plans. The International Monetary Fund (IMF) has also been vocal about the need for a global digital currency system in the near future to provide "stability" in the face of national inflation crises.

Since the beginning of this year, the West has dropped a "financial bomb" on Russia, kicking the country's main central bank out of the SWIFT system, forcing Russia to seek alternatives. Analysis suggests that this also accelerates the global transition away from the dollar denominated structure.

However, the emergence of a large number of new central bank digital currencies has also raised concerns. Some analysts believe that price fluctuations may be as unstable as Bitcoin and other cryptocurrencies. This means that for ordinary consumers, the purchasing power of currency will have a high degree of uncertainty.

For this issue, analysis suggests that this provides a reason for organizations such as the IMF and the World Economic Forum to establish a global basket system (such as the Special Drawing Rights (SDR)), stabilize various central bank digital currency markets and homogenize them into a single centralized entity, thereby "saving the situation".

The members participating in the group discussion also include Jennifer Lassiter, Executive Director of the Digital Dollar Project, Yuval Rooz, CEO of Digital Asset, Accenture Director, David Treat, co-founder of the Digital Dollar Project, and Jon Frost, Senior Economist at the Bank for International Settlements. They all agree that SWIFT will continue to exist for 5 years.

Subsequently, a Mastercard spokesperson further added, "Miebach is only reinforcing their previous statement about SWIFT - their business is continuing to grow and its current form will change in the future. They are adding more features, not just an information system. ”