Joint report by the BIS Committee on Payments and Market Infrastructures (CPMI), the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank. Find the link to the report here.
Multilateral platforms could enhance cross-border payments by reducing the need for intermediaries and allowing payment services providers in different jurisdictions to transact directly with each other, according to a joint report published by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI), the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank.
Exploring multilateral platforms for cross-border payments has been informed by a survey of central banks and through discussions with existing platform operators. The report analyses the potential costs and benefits of multilateral platforms and how they might alleviate cross-border payments frictions.
Two paths for establishing multilateral platforms can be followed: the growth approach; and the greenfield approach. The growth approach involves expanding existing multilateral platforms to additional jurisdictions, currencies and participants. The greenfield approach involves building a new, potentially global, infrastructure for cross-border payments.
The decision to establish a multilateral platform, and the approach to doing so, requires careful consideration of the associated benefits, challenges and risks. This report offers key insights for payment system operators and authorities contemplating the expansion or establishment of multilateral platforms.