CBDC News

CBDC Not the Answer for Cross Border Payments?

OMFIF, in partnership with Giesecke+Devrient, is publishing a report in February exploring the factors contributing to the hesitation about launching a CBDC and what concerns central banks struggle with. In the report’s survey of central banks, 81% of respondents have issued or expect to issue a CBDC at some point, with 47% expecting to issue one within five years.

However, OMFIF’s future of payments survey of central banks raises a question about the push towards wholesale CBDC where improving cross border payments is a key rationale. The survey asked, ‘what do you think is the most promising avenue to improve cross-border payments?’ Connecting CBDCs was a distant second.

47% of respondents answered interlinking faster payment systems, 13% connecting CBDCs, 10% interlinking RTGS systems, 7% harmonising formats like ISO20022, 7% aligning regulatory frameworks and 7% DLT/shared ledger infrastructure.