Earlier this week, the Bank for International Settlements (BIS) published a report on enhancing cross border payments. It’s one of the first times that the potential advantages of global stablecoins have been acknowledged. However, the BIS reviewed several strategies or building blocks to improve payments. New technologies such as central bank digital currencies (CBDC) and global stablecoins were just one of five areas. Compared to the other four building block areas, the report considers new technologies as longer term solutions.
The paper is one piece of the response to the G20, which has made improving cross border payments a priority. This week’s report focuses on the building blocks in advance of drawing up a roadmap, which is due in October.
Of the five building block areas outlined, two relate to collaboration and regulation. The three implementation areas include enhancing existing payment systems, improving data quality and market practices, and finally exploring the role of new payment infrastructures such as CBDCs and stablecoins.
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