BIS Plans for 24/7 Central Bank Settlement
Marcus Hughes, Head of Strategic Business Development talks on BIS, 24/7 RTGS being the solution to problems of cross-border payments, worthy option of wholesale CBCD's to solve current cross-border payments etc.
"The BIS is asking the right questions as cross-border payments are still the least efficient of all electronic payment types, despite some recent improvements with SWIFT gpi. Cross-border B2B payments alone have a value of USD24 trillion, and that excludes all those small remittances and consumer payments between countries. What the BIS is doing is entirely consistent with G20 objectives to make cross-border payments faster, cheaper and more transparent, while ensuring they are secure and resilient.”
"Converting RTGS to 24/7 in multiple countries would be something of a quick fix to a longstanding problem. Yet, it is very much based on legacy systems, albeit it with significant operational changes being required. The problem is that this approach is the default of commercial banks which continually defer the date when they will finally need to replace legacy systems, due to the high cost and risks of such change....
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