Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269100 
Year of Publication: 
2022
Series/Report no.: 
ECB Working Paper No. 2693
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
The holy grail of cross-border payments is a solution allowing cross-border payments to be immediate, cheap, universal, and settled in a secure settlement medium. The search for such a solution is as old as international commerce and the implied need to pay. This paper describes current visions how to eventually find this holy grail within the next decade, namely through (i) modernized correspondent banking; (ii) emerging cross-border FinTech solutions; (iii) Bitcoin; (iv) global stablecoins; (v) interlinked instant payment systems with FX conversion layer; (vi) interlinked CBDC with FX conversion layer. For each, settlement mechanics are explained, and an assessment is provided on its potential to be the holy grail of cross-border payments. Several solutions are suitable for improving cross-border payments significantly, and some could even be the holy grail.
Subjects: 
cross-currency payments
bitcoin
correspondent banking
stablecoins
interlinking
CBDC
JEL: 
E42
E58
F31
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-5277-4
Document Type: 
Working Paper

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