IMPROVING INTERNATIONAL PAYMENTS UNDER THE IMPACT OF DIGITALISATION – SOME POSSIBLE SOLUTIONS IN THE EUROPEAN CONTEXT

Claudia Gabriela Baicu and Iulia Monica Oehler-Șincai
Authors registered in the RePEc Author Service: Iulia Monica Oehler-Şincai

Euroinfo, 2022, vol. 6, issue 4, 61-72

Abstract: The factors contributing to the development of international commercial, non-commercial and financial relations include the existence of an international payment system enabling the fast, safe, accessible and, transparent transfer of funds between different jurisdictions. However, currently, the international payment system, which is based on the traditional correspondent relationship, has several disadvantages. Against this background, the article aims to analyse the limits presented by the current international payment model and to investigate some possible solutions to improve its functioning by resorting to cryptocurrencies and the digital currencies of central banks, with focus on the European experience. The results of the paper underline the significant potential that digital currencies have for improving international payments, but these possible solutions are not yet sufficiently explored while facing a number of challenges that need to be addressed first.

Keywords: international payments; correspondent banking relationship; distributed ledger technology; cryptocurrencies; central bank digital currencies (search for similar items in EconPapers)
JEL-codes: E42 G21 G28 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:iem:eurinf:v:6:y:2022:i:4:p:61-72

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