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.
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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 their designs. CBDC from the start,” according to the BIS in an article titled “CBDC beyond borders: results from a survey of central banks” published this month.
Cross-border payments in Singapore
“With the wholesale CBDC structure and the DLT [distributed ledger technology] structure, there may be an opportunity to redesign the entire ledger system, especially when you are dealing with cross-border settlements. world” Sopnendu Mohanty, fintech director at the Monetary Authority of Singapore (MAS) spoke at a panel discussion on “Asia Pacific CBDC Innovation, Collaboration, and Interoperability” at. Hyperledger Global Forum 2021, a recent enterprise blockchain event.
Mohanty said that Singapore and Thailand, which linked up a nationwide real-time retail payment system – PayNow in Singapore and PromptPay in Thailand – earlier this year after three years of work, have significantly reduced…
