Breaking barriers: how CBDCs can revolutionise cross-border payments

Policy-makers are turning to central bank digital currencies to address the slow speeds, high costs and lack of transparency in cross-border payments. Integrating a trusted credential system with CBDC payment solutions can enhance interoperability and ensure an efficient flow of funds across borders. By optimising global commerce payments, businesses can benefit from reduced costs and increased liquidity, thereby accelerating economic growth.

OMFIF’s Digital Monetary Institute and Giesecke+Devrient convened a private roundtable to explore the benefits and challenges of CBDC-based cross-border payments. The discussion will explore how tokenised money, together with verified credentials, can streamline transactions and greatly enhance and stimulate international trade participation, particularly for small or medium-sized enterprises. It addressed considerations and opportunities for future interoperability between CBDCs and other forms of digital currency and payment platforms. Insights and lessons from pilot projects and use-cases have also been examined.

This in-person roundtable allowed for informal exchange and a better appreciation of participants’ viewpoints. The roundtable was off the record, held under the Chatham House rule and was for representatives primarily from central banks and multilateral organisations.