The International Monetary Fund (IMF), the World Bank and the Bank for International Settlements (BIS) carried out a comprehensive study on the use of digital central bank currencies (CBDCs) in payment transactions. Their report to the G20 states that the increase in cross-border payments is “achievable … as long as countries work together”.
The joint report entitled “Central Bank Digital Currencies for Cross-Border Payments” states that “Cross-border payments are often criticized for their high cost, slow speed, accessibility, etc., limited access and insufficient transparency”. To meet these challenges, the G20 countries adopted a roadmap last October that was developed by the Financial Stability Board (FSB) and other relevant standardization bodies.
Various aspects of the Central Bank’s digital currency (CBDC) were analyzed in the report. This includes each country’s potential intentions, the central bank’s current thinking about using CBDC across borders, and the potential benefits and risks of using CBDC for cross-border payments.
“Improved cross-border payments can be achieved through different levels of integration and collaboration. The analysis underlines both the need for multilateral cooperation with regard to macro-financial consequences and the importance of interoperability between CBDCs. “
The joint report concludes:
“Central bank digital currencies have the potential to improve the efficiency of cross-border payments as long as countries work together.”
Many central banks are currently investigating the risks, benefits, and differing designs of CBDCs, the report says at length, noting that to date no jurisdiction has made CBDCs and many design and policy decisions remain unresolved. Some central banks are already in the test phase, such as China.
According to NewsBitcoin