Key insights from a roundtable on the future blueprint for cross-border payments, held at the Point Zero Forum 2024.
September 2024
This paper presents key insights and actionable outcomes derived from a roundtable on the future blueprint for cross-border payments, held at the Point Zero Forum 2024. The roundtable touched on Project Nexus, where a fourth phase of the project involving a group of first mover countries working with the BIS is now underway. This phase aims to bring Nexus into an operational state. Discussion explored how multilateral networks like Nexus, while hard to establish at the onset, can offer significant opportunities and benefits that can alleviate some of the key pain points in cross-border payments (e.g., potential for greater scalability, standardisation, lower FX costs, greater visibility of data and fund flows to better combat fraud).
A key insight from the roundtable was how a multiplicity of payment systems or arrangements is not detrimental as long as they are interoperable. There was emphasis on the need for collaborative efforts to foster interoperability, not just at the technical level but also at the legal/regulatory and business levels. Another insight gained from the discussion was that public policy goals can co-exist with financial sustainability objectives. As the saying goes, "A rising tide lifts all boats", the challenge would be to find the new equilibrium and balance between both objectives to ensure that everyone benefits.
FutureMatters is a platform for thought leaders, practitioners, and industry players to share their insights on emerging opportunities and challenges in today's world. Apply to be a contributor here.