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The global payment landscape is undergoing a significant shift due to the increasing prevalence of digitalisation and tokenisation. Central banks are playing a crucial role in maintaining trust in money and driving innovation, particularly in three key areas: advancing fast payment systems, exploring retail central bank digital currencies (CBDCs), and addressing the need for wholesale CBDCs.
Advancing Fast Payment Systems
These developments aim to improve the speed and reduce the cost of payments, especially for cross-border transactions, while also enhancing access to financial services, particularly in emerging market economies.
- Enhancing transaction speed
- Reducing payment costs
- Improving financial service access
Exploring Retail Central Bank Digital Currencies (CBDCs)
This progress represents a significant stride towards a more efficient and inclusive global financial system. The Bank for International Settlements (BIS) is actively supporting central banks in these endeavors, with initiatives such as Project Nexus and Project Agorá demonstrating the potential of these innovations.
Retail CBDCs have the potential to revolutionize the way people access and use money, providing a secure and efficient means of payment for individuals and businesses alike.
Addressing the Need for Wholesale CBDCs
Wholesale CBDCs have the potential to streamline financial transactions between institutions, improving efficiency and reducing counterparty risk in the financial system.
These developments are paving the way for a more seamless and secure global financial infrastructure, benefiting economies and individuals worldwide.
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