As central banks intensify their research on central bank digital currencies (CBDCs), the international dimension of CBDC in facilitating cross-border payments will be significant. While globally, most CBDC projects have a domestic focus, certain central banks are collaborating to explore the use of CBDC to facilitate cross-border payments.
The G20 has made enhancing cross-border payments a priority, with CBDC emerging as an area of interest. As India is set to assume the G20 presidency ..
A standard foreign exchange transaction takes more than two days to settle. The Financial Stability Board (FSB) identifies multiple friction points in existing cross-border payments framework, such as fragmented and truncated data formats, complex processing of compliance checks, limited operating hours and legacy technology platforms.