The Bank for International Settlements Explores the Use of Global Stablecoins to Improve Cross-Border Payments
On October 14th, the Financial Stability Board (FSB) under the Bank of International Settlements (BIS) released a status report on the progress of improving cross-border payments. It mentioned that the Committee on Payments and Market Infrastructure (CPMI) should consider whether cross-border payments can be improved through a well-designed global stable currency arrangement. The deadline is December 2022. It is not clear whether this means that no global stablecoins, such as Diem, should be launched before then. The FSB has also set specific targets to reduce the global average retail payment cost to less than 1% and all channel payment costs to less than 3% by the end of 2027.