Yesterday, the Bank for International Settlements (BIS) revealed Project Rialto, a review of the potential for wholesale digital currency or using central bank digital currency (CBDC) in the settlement process for foreign exchange. BIS said that decentralized processes using interlinked payment infrastructures might be considered promising avenues to improve cross-border payments.
Laurent Descout, founder and CEO of Neo, a cross-border payments and FX Fintech, commented on the review. He said that for quite some time cross border payments have been archaic and in need of disruption.
“Many across the industry believe that digital asset tokenisation could be the answer to eradicating inefficient and slow processes in cross-border payments. It is possible that new digital assets can fit into traditional banking practices, and comply with current laws, helping to simplify and shorten complex and long bank transfers,” said Descout. “The launch of Project Rialto by BIS to explore how instant cross-border payments could be improved by using a new modular foreign exchange component combined with settlement in wholesale central bank digital currencies (wCBDC) has the potential to advance payments globally.”
Desout said it is an exciting time in the payments sector – one of the most successful categories in the Fintech space.
“Corporates should stay abreast of the latest developments and start having conversations about whether they have the appropriate systems in place for tokenised methods such as CBDCs and stablecoins coming down the line. Those who don’t, risk being left behind.”
