Objectives of the session
The global payment infrastructure and cross-border payments have gained significance, spurred by the G20’s commitment to enhancing cross-border payments. Domestic payments have seen advancements, but cross-border transactions require comprehensive reforms. The G20-endorsed roadmap aims to make cross-border payments faster, safer, cheaper, and more efficient, benefiting citizens worldwide.
Central banks, private sector institutions, and international organizations support this roadmap, focusing on technical foundations, market infrastructure, and regulatory frameworks. Positive developments include ISO 20022 implementation, interlinking payment systems, and extended settlement service hours. Challenges lie in accommodating diverse needs, use cases, and business models across jurisdictions and regions.
Effective public-private cooperation is essential. Central banks and the private sector must collaborate to foster innovation and infrastructure development. Public-private partnerships, exemplified by initiatives like CLS, enhance payment system interconnectivity and risk management.
Harmonizing rules and standards is crucial, especially in messaging and data standards, while ensuring consistency in regulatory frameworks, AML, and CFT requirements across borders. Balancing data privacy and seamless data flows is challenging.
Wholesale payments present liquidity and settlement risk challenges, requiring strong political and international cooperation, particularly in addressing geopolitical complexities affecting currency availability for payment-versus-payment settlement.
Identifying high-impact areas and reinforcing success factors is vital as the roadmap progresses. Public-private taskforces address challenges, and ongoing consultation is necessary to align with the roadmap’s goals.
In summary, the G20-endorsed roadmap seeks to enhance global payment infrastructures and cross-border payments. Cooperation, innovation, risk management, harmonization, and international collaboration are crucial for its success. The session will assess progress and discuss related challenges and success factors.
Questions to be addressed.
- What is the G20 roadmap for enhancing cross-border payments, priority areas, expected benefits and evolutions?
- How can effective public-private cooperation improve cross-border payments?
- What challenges and considerations are associated with improving cross-border payments and what would global payment ecosystem look like in 2030?