{ "title": "Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations", "publication": "Fintech Notes, May 15, 2024", "sourceUrl": "https://www.imf.org/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195", "canonical": "https://www.imf.org/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195", "overlayPath": "/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/index.md", "summary": "Many central banks are currently exploring the possibility of issuing retail central bank digital currency (CBDC). While the primary objective varies between jurisdictions, many central banks consider improved cross-border payments as a potential benefit and previous work has shown that CBDC can hel", "sections": [ { "heading": "Overview and Purpose", "content": "- Authors: Andre Reslow, Gabriel Soderberg, Natsuki Tsuda\n- Publication date: May 15, 2024\n- Series: Fintech Notes No 2024/002; Issue: 002; Volume: 2024; Pages: 43\n- DOI: https://doi.org/10.5089/9798400272035.063\n- ISBN: 9798400272035\n- ISSN: 2664-5912\n- Focus: Retail CBDC—primarily targeting households and non-financial firms; wholesale CBDC considerations left for future work though many discussions are applicable to wholesale CBDC and other forms of money." }, { "heading": "Key Findings on Cross-Border Payments with Retail CBDC", "content": "- CBDC can help overcome some of the frictions in cross-border payments.\n- CBDC is a safe and liquid asset that reduces:\n - the number of financial intermediaries involved in a payment chain, and\n - settlement risk.\n- Designing CBDC systems for cross-border payments is not fundamentally different from tailoring other payment systems, though:\n - roles and responsibilities in a CBDC system might be slightly different, and\n - the central bank may play a more pivotal role given CBDC’s nature as public money as opposed to commercial bank money.\n- The note draws lessons from ongoing experimentation and research to identify design and policy considerations so retail CBDC systems may be compatible for cross-border payments." }, { "heading": "Design and Policy Considerations (summary)", "content": "- Compatibility objective:\n - Develop retail CBDC systems with cross-border payment compatibility in mind while recognizing jurisdictional variations in primary objectives.\n- Central bank role:\n - Anticipate a more central role for central banks in a retail CBDC ecosystem relative to existing commercial-bank-based money systems.\n- Operational design elements:\n - Reduce settlement layers and intermediaries to lower settlement risk and improve liquidity.\n - Tailor roles and responsibilities to reflect CBDC as public money.\n- Scope boundaries:\n - The analysis and recommendations focus on retail CBDC; wholesale CBDC is excluded from the main scope but referenced where relevant." }, { "heading": "Subjects and Keywords (as listed)", "content": "- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Central Bank digital currencies, Central banks, Crime, Currencies, Economic sectors, Financial institutions, Foreign exchange, Money, Nonbank financial institutions, Technology\n- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), capital flow management, capital flow management measure, CBDC design consideration, central bank digital currencies, cross-border payment, cross-border payments, Currencies, eNaira, fintech, foreign exchange, Global, IMF Library, Nonbank financial institutions, provider restriction\n\nCross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations — Fintech Notes 2024/002 (May 15, 2024) by Andre Reslow, Gabriel Soderberg, Natsuki Tsuda.\n\n---\n\n Content in this bundle\n\n- Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations\n - Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195" } ], "bullets": [ "[Markdown version](/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/index.md)", "[Structured JSON version](/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/index.json)", "[Bundle manifest](/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/bundle-manifest.json)", "Authors: Andre Reslow, Gabriel Soderberg, Natsuki Tsuda", "Published: May 15, 2024", "Series: Fintech Notes", "DOI: https://doi.org/10.5089/9798400272035.063", "Authors: Andre Reslow, Gabriel Soderberg, Natsuki Tsuda", "Publication date: May 15, 2024", "Series: Fintech Notes No 2024/002; Issue: 002; Volume: 2024; Pages: 43", "DOI: https://doi.org/10.5089/9798400272035.063", "ISBN: 9798400272035", "ISSN: 2664-5912", "Focus: Retail CBDC—primarily targeting households and non-financial firms; wholesale CBDC considerations left for future work though many discussions are applicable to wholesale CBDC and other forms of money.", "CBDC can help overcome some of the frictions in cross-border payments.", "CBDC is a safe and liquid asset that reduces:", "Designing CBDC systems for cross-border payments is not fundamentally different from tailoring other payment systems, though:", "The note draws lessons from ongoing experimentation and research to identify design and policy considerations so retail CBDC systems may be compatible for cross-border payments.", "Compatibility objective:", "Central bank role:", "Operational design elements:", "Scope boundaries:", "Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Central Bank digital currencies, Central banks, Crime, Currencies, Economic sectors, Financial institutions, Foreign exchange, Money, Nonbank financial institutions, Technology", "Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), capital flow management, capital flow management measure, CBDC design consideration, central bank digital currencies, cross-border payment, cross-border payments, Currencies, eNaira, fintech, foreign exchange, Global, IMF Library, Nonbank financial institutions, provider restriction", "**Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations**" ], "related": [ { "title": "Cross-Border Payments with Retail Central Bank Digital Currencies: Design and Policy Considerations", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/ftn063/2024/english/ftnea2024002.pdf", "summary": { "path": "/-/media/files/publications/ftn063/2024/english/ftnea2024002.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/ftn063/2024/english/ftnea2024002.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/index.md", "json": "/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/index.json", "bundleManifest": "/en/publications/fintech-notes/issues/2024/05/15/cross-border-payments-with-retail-central-bank-digital-currencies-547195/bundle-manifest.json" }, "generatedAtUtc": "2026-09-21T15:00:16.612Z" }