BIS is exploring multilateral platforms for cross-border payments
The Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements, the International Monetary Fund (IMF) and the World Bank have published a joint report which identifies challenges and a joint approach to creating a multilateral platform for cross-border payments.
The report is based on a survey conducted among central banks and a discussion with platform operators. The report includes an analysis of potential costs and benefits of multilateral platforms and how they could alleviate some of the difficulties in cross-border payments.
According to the report, the decision to create a multilateral platform would require careful consideration of related benefits, challenges and threats. The report provides key insights for payment system operators and authorities that are considering expanding or creating multilateral platforms.
Multilateral platforms are cross-border payment systems that are multi-jurisdictional by design. Such platforms could streamline cross-border payments by reducing the demand for agents and allowing payment service providers in various jurisdictions to reach each other through direct transactions.
