IMF, World Bank, BIS Report: Cross-Border Payment Efficiency Can Be Improved through Countries' Collaboration on CBDCs

The International Monetary Fund (IMF), World Bank, and Bank for International Settlements (BIS) have conducted extensive research on the use of Central Bank Digital Currencies (CBDCs) for cross-border payments. Reports submitted to the G20 by these organizations indicate that enhancing cross-border payments is achievable through collaborative efforts among countries.

The International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS) have conducted extensive research on the use of Central Bank Digital Currencies (CBDC) for cross-border payments. Their report submitted to the G20 states that strengthening cross-border payments is achievable with collective efforts from all countries.

According to the joint report titled "Central Bank Digital Currencies and Cross-Border Payments" available here, the conclusion drawn is that "CBDC has the potential to enhance the efficiency of cross-border payments with collective efforts from all countries."

The report highlights that many central banks are currently studying the risks, benefits, and various designs of CBDC. To date, there is no universally implemented CBDC, and many design and policy issues remain unresolved, with China being among the more proactive countries in the testing phase.

The current challenges in cross-border payments, as pointed out in the report, include high costs, slow speeds, limited access, and inadequate transparency which have been subject to criticism.

To address these challenges, the G20 agreed in October last year to plan towards CBDC, with the Financial Stability Board (FSB) and other relevant standard-setting bodies leading the way.

The report provides a comprehensive analysis of CBDC from various perspectives, including domestic and potential designs, current central bank considerations for cross-border CBDC usage, and the potential benefits and risks of using CBDC for cross-border payments.

The report suggests that strengthening cross-border payments "can be achieved through varying degrees of integration and cooperation," emphasizing the necessity and importance of multilateral cooperation and interoperability among CBDCs from a macro perspective.

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