The World Bank and the IMF are supporting the CBDCs.  The BIS (Bank for International Settlements) stated that their coordination on digital currencies would help deal with delayed money transfer services, making it possible to transfer money faster throughout the world.

Indermit Gill, World Bank Group vice president of equitable growth, finance, and institutions, stated, “Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver benefits for citizens, businesses, and economies worldwide.”

The Report to the G20 is titled “The Central Bank Digital Currencies for Cross Border Payments” July 2021.

The report in the executive summary acknowledges that “CBDCs have the potential to enhance the efficiency of cross-border payments, as long as their design follows the “Hippocratic Oath for CBDC design” and its promise to “not harm,” as highlighted by the Group of central banks (2020).

There is a suggestion that the coordination of national CBDC designs will lead to more efficient cross-currency and cross-border payments.

And, it reinstates that Cross-border CBDCs could offer the opportunity to start with a “clean slate” and address the frictions inherent in current cross-border payment systems and arrangements from the outset.

These enhancements could be made by offering secure settlement by reducing costly and lengthy intermediation chains throughout the payment process and eliminating operating hour mismatches by being accessible.

The report covers elementary considerations on CBDCs designs in the context of cross-border payments, taking stock of potential CBDC designs in cross-border payments, opportunities, and risks that are related to cross-border usage of CBDC.

Three models which conceptually illustrate the CBDC systems are also presented in the report.

The report concludes that several central banks are investigating risks, benefits, and various designs of CBDCs; however, with a strong focus on domestic needs. There are only a few central banks that have made healthy design choices so far.

The implications of CBDCs, even if only intended for domestic use, are expected to go beyond borders, thus making it essential to coordinate work and find common ground.

When coordinated successfully, the clean slate presented by CBDCs can, in time and combination with other improvements, be leveraged to improve cross-border payments.

The report has shown how CBDC could facilitate enhanced cross-border payments conceptually and how efforts in practice are taking these considerations forward.

The arrangements to provide for these payments require different degrees of international integration and cooperation, which consists of essential compatibility with common standards through establishing global payment infrastructures.

Several complex questions are to be further analyzed, for instance, the interoperability between existing and new infrastructures, the access to and control of central bank money, the distinction between wholesale and retail CBDC, the role of private industry actors, and many others.  Those who are willing to know more might want to explore the exhaustive report.