Central Bank Digital Currencies for Cross-Border Payments

A joint report (the Central Bank Digital Currencies for Cross-Border Payments) published by the G20 Committee on Payments and Market Infrastructures, the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank is backing central bank digital currencies (CBDCs) for their potential to enhance the efficiency of cross-border payments. In particular, the report analyzes how international payments with CBDCs can be achieved through different degrees of integration and cooperation, ranging from basic compatibility with common standards to the establishment of international payment infrastructures. The analysis highlights both the need for multilateral collaboration on macro-financial consequences as well as the importance of interoperability between CBDCs.