BIS Lists Benefits of CBDC in International Payments!

Bitcoin (BTC) and cryptocurrencies skeptical from the Bank for International Settlements (BIS) A new statement has come.

Gathering the world’s central banks under one roof BISin a statement today central bank digital currency (CBDC)He said that a cross-border payment model for ) offers several benefits for both banks and individual customers.

Stating that cross-border payments still face challenges such as high cost, low speed, limited access and insufficient transparency, BIS said the G20 proposes to make cross-border payments a priority.

Stating that it is working against this proposal, BIS stated that the new model was found as a result of the project carried out with the help of the central banks of Israel, Norway and Sweden.

The project has different national CBDC It was stated that it uses the hub-and-adapter method to establish connections between systems.

This method gives central banks almost complete control over their CBDCs.

“Although domestic payments have improved significantly in many jurisdictions in recent years, cross-border payments still face challenges such as high costs, low speed, limited access and insufficient transparency.

The G20 has made making cross-border payments a priority, and in response to this call to action, the BIS Innovation Center is coordinating experiments on how this can be done.

Many central banks are exploring retail central bank digital currencies (CBDCs).

‘Project Icebreaker’ run by Israel, Norway and Sweden explores a specific way to connect retail CBDC systems using a hub and adapter model to allow them to be scaled easily.

Additionally, these features will promote simplicity and interoperability, reduce the risk of compromise, and increase competition and transparency for cross-border retail CBDC payments.”