Author : Mr. Tobias Adrian
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 57 pages
Book Rating : 4.4/5 (2 download)
Book Synopsis A Multi-Currency Exchange and Contracting Platform by : Mr. Tobias Adrian
Download or read book A Multi-Currency Exchange and Contracting Platform written by Mr. Tobias Adrian and published by International Monetary Fund. This book was released on 2022-11-04 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.