Digital SDR to enhance payment systems, The Bulletin: Bugs in the system
By Bejoy Das Gupta and Miles Au Yeung
Cross-border payments are growing rapidly, propelled by services trade, demand from foreign investment flows and workers’ remittances, but remain costly, slow and opaque. Businesses and individuals are looking for faster, more convenient, transparent and inexpensive cross-border payment methods. One way to facilitate cross-border payments would be the use of a digital composite asset of stable value, or ‘eSDR’, based on the special drawing right, the International Monetary Fund’s composite currency unit.
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For law-abiding people, rapid advances in digitalisation offer many conveniences. For the criminally minded, they present countless openings for disruption. The massive size, complexity and interconnectedness of the financial system makes a globally-disruptive cyber attack a matter of when, not if. Public policy-makers must move quickly to fill whatever cracks they can. Contributors to this edition of The Bulletin include Tommy Tan, head of the technology risk supervision division at the Monetary Authority of Singapore, and Sabine Lautenschläger, member of the European Central Bank executive board.
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