In the context of an ever-faster development of internet transactions and payments which challenge traditional organisations among which legal boundaries, the 2020 the Group of Twenty (G-20) asked the Financial Stability Board (FSB) to coordinate the development of a roadmap regarding the enhancement of cross-border payments.
To quote the closing remarks of Jerome H. Powell at the conference hosted by the Committee on Payments and Market Infrastructure “Pushing the Frontiers of Payments: Towards Faster, Cheaper, More Transparent and More Inclusive Cross Border Payments, «the existing system, while safe and dependable, suffers from frictions, including processes that make it difficult to comply with anti-money-laundering and countering-terrorist-financing requirements, difficulty in managing payments across time zones, and, in certain areas, a reliance on outdated technology. Moreover, these frictions contribute to higher costs for cross-border transactions.”
In October 2020 the FSB issued a practical set of steps for moving ahead on the 19 building blocks that will bring about an improved system.
In this context the session will focus on clarifying what would be the best option between the improvement of existing arrangements or rather the leveraging emerging technologies, pointing out what are the routes to achieving harmonized-enough data and finally address legal barriers to cross-border payments. It will also discuss the role of public institutions and the private sector in order notably to swiftly address consumer needs based on field experience and expertise.
Points of discussion
- What are the issues at stake in the area of cross border payments?
- What are the focus areas and key success factors required in order to deliver the expected progress in the projected timeframe?
- What are the evolutions that regulation and supervision require, in order to match the expectations triggered by the deep overhaul of the cross-border payment landscape?