A central bank digital currency (CBDC) network could save global corporates over $100 billion a year in transaction costs when it comes to cross-border payments.
So says a report published Wednesday by consulting firm Oliver Wyman and megabank JPMorgan called “Unlocking $120 Billion Value in Cross-Border Payments.”
The report estimates that of the nearly $24 trillion in wholesale payments that move across borders each year, banks incur more than $120 billion in total transaction costs; this excludes potential hidden costs in trapped liquidity and delayed settlements.
Conversations around CBDCs, driven by the march of cryptocurrency and blockchain technology, can be about either retail issuance or the type of wholesale transactions this report is focused on.
