How Singapore and Cambodia see digital currency as a method of cross-border payments

During a recent conference, central bankers from Cambodia and Singapore discussed how digital currencies are transforming the current payment system for the better.

As interest in central bank digital currencies (CBDCs) continues to grow worldwide, central banks are increasingly shifting their focus from domestic applications to cross-border CBDC use.

A survey conducted of 50 central banks by the Bank for International Settlements (BIS) in the first quarter of this year found that 28% of central banks are considering options for making CBDCs. can interoperate at the wholesale level by forming multi-CBDC arrangements, including integrating multiple CBDCs into a single payment system. Nearly 14% of central banks say they are considering an active role in foreign exchange conversion.

The G20 has prioritized strengthening cross-border payments, and CBDCs provide an opportunity for central banks to improve existing international payment arrangements.

“Central bank digital currencies (CBDCs) can defuse current disagreements over cross-border payments – and especially as central banks incorporate international elements into…