BCBS – International cooperation essential for Central Bank Digital Currencies (CDBC) to improve cross-border payments

July 9, 2021 – Basel issued a joint report to the G20, Central Bank Digital Currencies (CBDCs) for cross-border payments, with the CPMI, BIS Innovation Hub, IMF, and the World Bank.

States that CBDCs have the potential to enhance the efficiency of cross-border payments as long as countries cooperate and authorities coordinate internationally.

Findings
The report analyzes how CBDCs could facilitate enhanced cross-border payments and examines how practical efforts are currently taking these considerations forward.

Facilitating international payments with CBDCs can be achieved via different degrees of integration and cooperation, starting with basic compatibility with common standards. Highlights the need for multinational collaboration on macro-financial consequences as well as the importance of interoperability between the CBDCs of different jurisdictions. No major jurisdiction has yet launched a CBDC, with many design/policy decisions unresolved, and most CBDC investigations by central banks focus on domestic issues. The report is exploratory, examines cross-border implications with the assumption that CBDCs become widely used, more exploration of design, macro-financial implications are needed. Enhancements in regulatory, supervisory, and oversight frameworks would be vital.

For more information, visit www.bis.org.

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