With:
| Simon Chantry, Bitt
| John Kiff, Satoshi Capital Advisors
Many central banks are studying, designing, prototyping, or rolling out retail CBDCs. Motivations differ significantly across jurisdictions, but there is one potential advantage that could be common to all cases.
If central banks agree on some basic technological foundations, retail CBDCs could interoperate and become a solution to cross-border retail payments. Is this an overlooked potential benefit of retail CBDCs?
We asked guests Simon Chantry (Co-founder & CIO, Bitt) and John Kiff (Head of CBDC/ Digital Captial Markets Advisory, Satoshi Capital Advisors), who joined session #12 of the CBDC Broadcast, to discuss.
The session covered:
Whether a CBDC could be a catalyst for responsible innovation in the digital economy and ensure interoperability with legacy and future payment solutions for cross-border payments
The possibility of a CBDC crowding out other payment instruments
Whether achieving full interoperability is likely if retail CBDCs are designed with local use in mind
The factors determining if CBDCs could be interoperable
How foreign exchanges issues typical of cross-border payments be solved via interoperable CBDCs
The competitors of cross-border retail CBDCs- correspondent banking, stablecoins and cryptos or both
Whether an FMI’s decision to provide interoperability between a CBDC with another form of money would be a commercial decision based on its business model
Whether the type of CBDC issued to the market would impact the willingness of FMIs to provide interoperability
The benefits cross-border retail CBDCs bring to the table
