The US Faster Payments Council (FPC) has released the second edition of its cross-border payments bulletin exploring faster international payments.
The first bulletin was created by the FPC Cross-Border Payments Work Group with financial backing from Wells Fargo, and took on the endeavour to explore the effect of Central Bank Digital Currencies (CBDCs) on cross-border payments.
In its second edition, the bulletin describes a simple cross-border correspondent banking payment flow model with a guidepost, explains the cash flows mechanisms at-play when a cross-border transaction occurs, and sets the ground for further study by raising questions about money and information movement in the digital world.
Barry Tooker, Principal at TransactionBanker.com and FPC Cross-Border Payments Work Group Chair, said: “In order to improve cross-border payments, critical considerations and decisions are required to address the access methodology and how CBDCs will connect and interoperate across jurisdictions, but much depends on implementation choices made by various central banks and associated authorities.
“In this the second in our series of bulletins, we propose a working model for an end-to-end cross-border payment leveraging one that has been published by the Bank for International Settlements and examines both the monetary and data flows.”
The FPC has stated that the bulletin series has been created with the goal in mind to educate the payments industry on the latest of CBDCs in the cross-border faster payments area.
While the first edition included an introduction to the definitions in the space and delved into the concept of CBDCs, the second highlights the changing industry standards and discusses the impact of new technologies, with more bulletins on the way.
