The Bank for International Settlements issued a report to help central banks extend operating hours for real-time gross settlement systems to reduce delays in cross-border payments settlement.
Report Details: The report from BIS’s Committee on Payments and Market Infrastructures says extending and aligning RTGS operating hours could speed up cross-border payments, especially between jurisdictions with significant time zone differences. It could also improve liquidity management, reduce settlement risk, enhance performance, and facilitate cheaper and more transparent cross-border payments in line with G20 targets, the report says.
Background: Slow and inefficient cross-border payments are frequently cited as a justification for a U.S. central bank digital currency and stablecoins. So the evolution of traditional RTGS systems could play a role in the potential development of CBDCs and other digital assets.
ICBA Position: ICBA opposes the creation of a U.S. CBDC, arguing that it would disintermediate community banks and pose privacy risks without improving on superior payment alternatives, such as FedNow. ICBA in September released polling conducted by Morning Consult indicating consumers support a regulatory framework for digital assets and are skeptical of the creation of a U.S. CBDC.
Recent Congressional Statement: In a written statement for a Senate Banking Committee hearing last week on crypto oversight, ICBA laid out the risks posed by stablecoins and decentralized finance while reiterating its push for comprehensive and coordinated crypto regulations that avoid dangerous loopholes.
