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 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…