As central banks across the world ramp up their efforts to develop their own digital currencies, thoughts are quickly turning to how they could work in a globalised world.
Indeed – with global payment revenues totaling almost $2 trillion in 2020 according to McKinsey – it is increasingly clear that facilitating interoperability and interlinkages between the 80+ domestic CBDCs currently in development will be critical to fully realise the expected benefits.
Complicating matters is the fragmented nature of the current CBDC ecosystem. Central banks are developing their own digital currencies based on different technologies, standards and protocols. If left unaddressed, this could prevent businesses and consumers from easily making cross-border CBDC payments in the future.
Serious efforts are however being made to join up CBDCs across jurisdictions. The Bank for International Settlements (BIS) is leading a number of projects aimed at bridging multiple regional CBDCs. China is progressing its trials to interlink the digital yuan with Hong Kong's Faster Payment System. Commercial players have also joined forces in the Regulated Liability Network (RLN) initiative to build a global network for exchanging tokenised regulated liabilities, such as CBDCs.
Yet, despite the various projects underway, questions remain: How will CBDC payment flows be orchestrated between parties across multiple jurisdictions? How will the digital identity of all parties involved in CBDC transactions be verified? How will CBDCs meet the compliance requirements associated with international payments?
Join this webinar to hear experts from across the financial ecosystem debate the future for international payments in a CBDC world.
Agenda and speakers to be announced shortly.