Bank for International Settlements – BIS’ Post

The Bank for International Settlements and its central bank partners have successfully demonstrated with Project Meridian FX how wholesale payment infrastructures, such as RTGS systems, can interoperate with each other for FX transactions using new technologies. The joint project between the Bank for International Settlements, Bank of England, Banque de France, Banca d'Italia - Eurosistema, Deutsche Bundesbank and European Central Bank explored synchronising FX transactions using distributed ledger technology whereby the transfer of one leg of the transaction happens only if the transfer of the other occurs. Meridian FX sought to address some of the actions called for in the G20 cross-border payments roadmap. For example, reducing foreign exchange settlement risk using payment-versus-payment transactions and establishing realistic links between the wholesale payment infrastructures of different countries. Synchronisation could also mitigate some of the liquidity risk and credit risk challenges in the foreign exchange market. Combined with the results of previous work undertaken by the BIS and the Bank of England, Meridian FX shows that synchronisation can be used regardless of the asset or fund of the transaction involved and the technology of the ledgers, highlighting its potential use in other markets. Read more here https://lnkd.in/eZTVgNKu Insights gained from the project will inform the work programmes of the participating central banks. #CrossBorderPayments