The World Bank, IMF and BIS push for central bank cryptocurrencies to improve cross-border payments

The World Bank, IMF and BIS push for central bank cryptocurrencies to improve cross-border payments

Central bank digital currencies could vastly improve today's international payments systems, according to a by the World Bank, the International Monetary Fund and the Bank for International Settlements late last week. The report, which the group sent to the G20, outlined that so-called CBDCs had the power to offer faster, cheaper, transparent and more inclusive cross-border payments than the traditional financial system. But, the group said, collaboration will be essential. "Implications of CBDCs, even if only intended for domestic use, will go beyond borders, making it crucial to coordinate work and find common ground. If coordinated successfully, the clean slate presented by CBDCs might - in time and in combination with other improvements - be leveraged to enhance cross border payments," the report said. A CBDC is a digital currency issued by a central bank. CBDCs have already been issued by the Bahamas which the Sand Dollar and the Eastern Caribbean's DCash. The current system suffers from long transaction delays and can be costly because of all the systems in place across the world, according to the report. There is also a lack of transparency and traceability. Central banks like the , which is looking into a digital dollar, have