Using central bank digital currencies across borders: Lessons from practical experiments

Morten Bech, Codruta Boar, Daniel Eidan, Philipp Haene, Henry Holden and Wee Kee Toh
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Morten Bech: Head, Innovation Hub Swiss Centre, Bank for International Settlements, Switzerland
Codruta Boar: Adviser, Innovation Hub, Bank for International Settlements, Switzerland
Daniel Eidan: Adviser, Innovation Hub, Bank for International Settlements, Switzerland
Henry Holden: Adviser, Innovation Hub, Bank for International Settlements, Switzerland
Wee Kee Toh: Executive Director, J.P. Morgan, Singapore

Journal of Payments Strategy & Systems, 2023, vol. 17, issue 1, 46-57

Abstract: Central bank digital currencies (CBDCs) could help to deliver better cross-border payments. With projects InthanonLionRock2, Jura, Dunbar and mBridge, the BIS Innovation Hub has been leading practical experiments to show how CBDCs could make cross-border payments faster, cheaper and more transparent. This paper looks at similarities and differences across these four cross-border CBDC experiments with a view to setting out the insights and lessons learned. These experiments demonstrate that platforms with two or more CBDCs are technically feasible and could lower costs, make settlement faster and increase operational transparency. Nevertheless, policy, legal, governance and advanced feasibility questions remain. Work will continue with future phases of the experimentation.

Keywords: cross-border payments; CBDC; DLT; central banks; innovation; experiments (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
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