Authors
Raphael Auer, Codruta Boar, Giulio Cornelli, Jon Frost, Henry Holden, Andreas Wehrli
Publication date
2021
Journal
BIS papers
Publisher
Bank for International Settlements
Description
Central bank digital currencies (CBDCs) could ease current frictions in cross-border payments – and particularly so if central banks factor an international dimension into CBDC design from the outset. Based on a survey of 50 central banks in the first quarter of 2021, this paper explores initial thinking on the cross-border use of CBDCs. While most central banks have yet to take a firm decision on issuing a CBDC, the survey responses show a tentative inclination towards allowing use of a future CBDC by tourists and other non-residents domestically. They have a cautious approach to allowing use of a CBDC beyond their own jurisdiction. Concerns about the economic and monetary implications of cross-border CBDC use and about private sector global stablecoins are taken seriously. At the wholesale level, 28% of surveyed central banks are considering options to make CBDCs interoperable by forming multi-CBDC arrangements. This involves arrangements that enhance compatibility, interlink or even integrate multiple CBDCs into a single payments system. Finally, almost 14% of respondents are considering an active role for the central bank in FX conversion.
Total citations
20212022202320244231711
Scholar articles
R Auer, C Boar, G Cornelli, J Frost, H Holden, A Wehrli - BIS papers, 2021