The European Central Bank (ecb) plans to introduce a digital euro that could revolutionize the process of cross-border payments. This could change personal transactions and international trade. Former German Economics Minister Dr. Karl-Theodor zu Guttenberg is a strong proponent of the development and predicted in his 2019 thesis that the coming “revolution in banking and finance [will] almost dwarf the revolutions by the Medici [Italian banking family] centuries ago.”
Correspondent banking helps facilitate international trade, finance and other services for foreign and local banks and institutions. Many rely on United States banks and the dollar for these cross-border payments. And cross-border transactions still take days and often have high fees.
But correspondent banking could soon see its very own revolution. Guttenberg wants to drive this development forward in Europe. In his thesis, Guttenberg tackles the confusion in terminology in correspondent banking and traces its roots back to ancient Babylon; most others place its starting point in Renaissance Italy. Guttenberg writes in Chapter 4 of his thesis.