{
  "title": "A Multi-Currency Exchange and Contracting Platform",
  "publication": "IMF Working Papers, November 4, 2022",
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  "summary": "Cross-border payments can be slow, expensive, and risky. They are intermediated by counterparties in different jurisdictions which rely on costly trusted relationships to offset the lack of a common settlement asset as well as common rules and governance.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Authors: Tobias Adrian, Federico Grinberg, Tommaso Mancini-Griffoli, Robert M. Townsend, Nicolas Zhang\n- Date: November 4, 2022\n- Core thesis: Present a vision for a multilateral platform to improve cross-border payments, related foreign exchange transactions, risk sharing, and broader financial contracting by leveraging technological innovations for public policy objectives.\n- Purpose: A first step to stimulate further work in this space; IMF Working Papers describe research in progress."
    },
    {
      "heading": "Key findings and propositions",
      "content": "- Cross-border payments currently suffer from being slow, expensive, and risky due to dependence on intermediaries across jurisdictions and the lack of a common settlement asset and common rules and governance.\n- A multilateral platform that uses a common ledger, smart contracts, and encryption could yield substantial improvements in:\n  - market efficiency\n  - market completeness\n  - access\n  - transparency\n  - transaction and compliance costs\n  - safety\n- The proposed platform would support not only payments but also foreign exchange transactions, risk sharing, and general financial contracting."
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    {
      "heading": "Technological components emphasized",
      "content": "- Common ledger\n- Smart contracts\n- Encryption"
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      "heading": "Intended policy and market outcomes",
      "content": "- Reduce reliance on costly trusted relationships between counterparties in different jurisdictions.\n- Provide a common settlement asset and common governance rules to lower frictions.\n- Expand the set of feasible contracts and risk-sharing arrangements across borders.\n- Improve transparency, lower transaction and compliance costs, and enhance safety of cross-border financial activity.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445"
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    "Authors: Tobias Adrian, Federico Grinberg, Tommaso Mancini-Griffoli, Robert M. Townsend, Nicolas Zhang",
    "Published: November 4, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400224188.001",
    "Authors: Tobias Adrian, Federico Grinberg, Tommaso Mancini-Griffoli, Robert M. Townsend, Nicolas Zhang",
    "Date: November 4, 2022",
    "Core thesis: Present a vision for a multilateral platform to improve cross-border payments, related foreign exchange transactions, risk sharing, and broader financial contracting by leveraging technological innovations for public policy objectives.",
    "Purpose: A first step to stimulate further work in this space; IMF Working Papers describe research in progress.",
    "Cross-border payments currently suffer from being slow, expensive, and risky due to dependence on intermediaries across jurisdictions and the lack of a common settlement asset and common rules and governance.",
    "A multilateral platform that uses a common ledger, smart contracts, and encryption could yield substantial improvements in:",
    "The proposed platform would support not only payments but also foreign exchange transactions, risk sharing, and general financial contracting.",
    "Common ledger",
    "Smart contracts",
    "Encryption",
    "Reduce reliance on costly trusted relationships between counterparties in different jurisdictions.",
    "Provide a common settlement asset and common governance rules to lower frictions.",
    "Expand the set of feasible contracts and risk-sharing arrangements across borders.",
    "Improve transparency, lower transaction and compliance costs, and enhance safety of cross-border financial activity.",
    "**Working Paper**"
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