## A Multi-Currency Exchange and Contracting Platform

_IMF Working Papers, November 4, 2022_

## Source details

**Canonical URL:** [A Multi-Currency Exchange and Contracting Platform](https://www.imf.org/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445/index.json)
- [Bundle manifest](/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445/bundle-manifest.json)

## Bibliographic details
- 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

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### Overview
- 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.

### Key findings and propositions
- 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:
  - market efficiency
  - market completeness
  - access
  - transparency
  - transaction and compliance costs
  - safety
- The proposed platform would support not only payments but also foreign exchange transactions, risk sharing, and general financial contracting.

### Technological components emphasized
- Common ledger
- Smart contracts
- Encryption

### Intended policy and market outcomes
- 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.

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2022/english/wpiea2022217-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2022/english/wpiea2022217-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2022/11/04/a-multi-currency-exchange-and-contracting-platform-525445_