Global norms would allow central bank digital currencies to operate seamlessly cross-border, a think tank suggested.

UK think tank: Digital currency rules needed for cross-border payments

According to a statement released on Friday by a think group funded by the City of London Corporation, global norms would make it possible for digital currencies issued by central banks to operate smoothly across borders and speed up wholesale payments.

The vast majority of central banks, such as the Federal Reserve, the Bank of England, and the European Central Bank, are now doing research on the possibility of issuing a digital version of their respective currencies.

While the United Kingdom has stated that a digital version of the pound sterling will not be accessible before the second half of this decade, the Federal Reserve has stated that a digital version of the dollar might assist sustain the worldwide standing of the greenback.

Which according Kay Swinburne, chair of the International Regulatory Strategy Group, a think tank backed by the City and TheCityUK, “key to realising the full potential of CBDCs is ensuring that they can operate across different markets to facilitate wholesale cross-border payments.” This statement was made in reference to the fact that CBDCs must be able to operate across multiple markets.

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“In order to make this aim a reality, we will need to cooperate with one another and adhere to universal regulatory standards.”

The IRSG stated in a paper that was published on Friday that there are several benefits to including CBDCs in wholesale digital payments if they are made “interoperable” for transactions that take place across international borders. These benefits are dependent on whether or not CBDCs are made “interoperable.”


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