A Multi-Currency Exchange and Contracting Platform


Tobias Adrian
Federico Grinberg
Tommaso Mancini-Griffoli
Robert M. Townsend
Nicolas Zhang


Cross-border payments can be slow, expensive, and risky. They are
intermediated by counterparties in different jurisdictions which rely on
costly trusted relationships to offset the lack of a common settlement
asset as well as common rules and governance. In this paper, we present
a vision for a multilateral platform that could improve cross-border
payments, as well as related foreign exchange transactions, risk sharing,
and more generally, financial contracting. The approach is to leverage
technological innovations for public policy objectives. A common
ledger, smart contracts, and encryption offer significant gains to
market efficiency, completeness, and access, as well as to transparency,
transaction and compliance costs, and safety. This paper is a first step
aiming to stimulate further work in this space.