Convertible central bank digital currencies (CBDCs) offer countries a tantalizing chance to improve vital cross-border payment rails, researchers from the Bank for International Settlements (BIS) wrote in a March note.
Authors Raphael Auer, Philipp Haene, and Henry Holden charted one road for cross-border CBDC finance in a detail-heavy research note. They offered a handful of potential mechanisms for multi-CBDC and took some potshots at the public sector’s inevitable competitor.
The biggest benefits will only come if countries collaborate to eliminate traditional banking frictions for their new, interoperable form of money, the BIS researchers said.
