A Multi-Currency Exchange and Contracting Platform


Tobias Adrian

Federico Grinberg

Tommaso Mancini-Griffoli

Robert M. Townsend

Nicolas Zhang

Resumo

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.

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Publicado Dec 22, 2023

Palavras-chave:
cross-border payments, multilateral platforms, digital money, CBDC, programmability, encryption