IMF looks to build platform for cross-border CBDC transactions

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The direc­tor and divi­sion chief of IMF’s Mon­e­tary and Cap­i­tal Mar­kets Depart­ment will soon pub­lish a paper lay­ing out a blue­print for a plat­form to sup­port CBDC clear­ing and set­tle­ment trans­ac­tions between mul­ti­ple countries.

See relat­ed arti­cle: Inter-coun­try use key for CBD­Cs to reach poten­tial: report

Fast facts

  • Writ­ing in the organization’s lat­est quar­ter­ly jour­nal, Tobias Adri­an and Tom­ma­so Manci­ni-Grif­foli, said the plat­form will pro­vide a com­mon set­tle­ment fea­ture and a com­mon pro­gram­ming lan­guage to write smart con­tracts on the platform.
  • The plat­form will be avail­able for both the pub­lic and pri­vate sec­tor to use, the arti­cle said.
  • “The chal­lenge will be to find the right gov­er­nance arrange­ments and to mobi­lize a suf­fi­cient num­ber of cen­tral banks to pull this off,” said Adri­an and Manci­ni-Grif­foli, but IMF is “a good place to start explor­ing these prospects” with mem­ber­ships globally.
  • In addi­tion to the IMF, Bank for Inter­na­tion­al Set­tle­ments has par­tic­i­pat­ed in cross-bor­der CBDC projects between sev­er­al coun­tries, such as the mBridge project involv­ing Hong Kong, Thai­land, main­land Chi­na and the Unit­ed Arab Emi­rates, and the Project Dun­bar involv­ing Aus­tralia, Malaysia, Sin­ga­pore and South Africa.
  • There are cur­rent­ly 105 coun­tries explor­ing a CBDC, accord­ing to the Atlantic Coun­cil.

See relat­ed arti­cle: US Dig­i­tal Dol­lar Project to work with Rip­ple on CBDC tech­ni­cal sandbox

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