#10: Gaining Momentum - Options for Access To and Interoperability of CBDCs Worldwide

CBDC Broadcast

30 Sept

5th October 2022

With:

| Anneke Kosse (Bank for International Settlements)

| Illaria Mattei (Bank for International Settlements)

Guests Anneke Kosse and Ilaria Mattei from the BIS join FNA to break down the results of the 2021 BIS Survey, which found that a record 90% of central banks are now actively engaged in CBDC work. The discussion pivots from domestic pilots to the global stage, focusing on the July 2022 G20 report: 'Options for access to and interoperability of CBDCs for cross-border payments.'

Our guests explore how central banks can leverage the "clean slate" of digital currency to fix the slow, opaque, and expensive legacy of correspondent banking. By examining the three primary interoperability models—compatible systems, interlinked systems, and single multi-CBDC platforms—the session outlines the technical and cooperative roadmap required to ensure that digital money doesn't stop at national borders.

Key Discussion Points:

The Global Pulse: Insights from the 2021 survey on why financial stability and payment efficiency are driving the move from research to pilots.
The Frictions: How CBDCs directly address the high fees and settlement delays inherent in today’s cross-border payment rails.
Interoperability Models: A deep dive into the technical trade-offs of linking different national CBDC systems or hosting them on a shared ledger.
Wholesale Advantage: Why wholesale CBDCs (wCBDC) are uniquely positioned to revolutionize interbank settlement and 24/7 liquidity.
International Cooperation: The critical need for central banks to agree on common technical standards and data requirements before implementation.

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