How can a currency achieve more widespread international use? We study the internationalization of the Chinese renminbi (RMB) through the lens of a unique policy experiment in Argentina. In 2023, amid a severe dollar shortage, Argentina expanded a currency swap line with the People's Bank of...

Project Meridian FX is an experiment led by the BIS Innovation Hub's London and Eurosystem Centres together with the Bank of England, Bank of France, Deutsche Bundesbank, Bank of Italy and European Central Bank. It builds on the original Project Meridian by focusing on foreign exchange (FX)...

The retail cross-border payments market is valued at more than $800 billion of transactions per year, and is growing. Despite this, retail cross-border transactions lag domestic ones in terms of cost, speed, access and transparency because of the complex processes they involve. This complexity...

Remittances are a lifeline for many households in low and middle income countries (LMICs), and have emerged as an important source of external financing for sustainable development. With over 800 million people dependent on remittances worldwide, their importance for developing and least...

This paper provides a targeted analysis of ML/TF risks pertaining to remittances to Samoa, confirming limited risks, and discusses potential opportunities for streamlining applicable AML/CFT requirements to operationalize regional remittances risk assessments. Over the past decade, Samoa has...

Cross-border payments are essential to the global financial system, facilitating trade and investment. The global cross-border traditional and crypto payment market approached a value of about one quadrillion dollars in 2024, with crypto payments representing only a small fraction despite their...

This paper explores the current use of crypto-assets for payments, focusing mostly on unbacked crypto-assets, while selectively referring to stablecoins. Although some specific characteristics of crypto-assets, such as their price volatility and unclear legal settlement, render them unsuitable...

With the rapid digitization of financial transactions, central banks have given considerable focus in recent years to the research and development of central bank digital currencies (CBDCs). While CBDCs could offer several advantages, there are concerns about end-user privacy. Traditional...

Most countries in Latin America and the Caribbean are implementing fast payment systems (FPS), often with the goal of enhancing access to and use of affordable financial services. FPS offer immediate transfer of funds on a 24x7 basis between end users. This paper assesses how FPS can promote...

Between 2012 and 2024, Poland-once a laggard in cashless payments among EU countries-underwent a profound transformation. The per capita number of cashless transactions at physical points of sale increased more than eightfold, rising from approximately 30 to over 250 per year, surpassing the EU...

Geopolitical frictions and high levels of uncertainty in US policy are driving countries to reduce dependence on the US dollar and implement new policies to promote their own currencies for settling cross-border trade. This Weekly Report analyzes the reactions of firms to such measures, focusing...

The single currency was expected to make the balance of payments irrelevant between the euro-area member states. This benign view has been challenged by recent developments, especially as imbalances between euro-area central banks have widened within the TARGET2 settlement system....

In this work, we problematize the issue of the statistical visibility of the trans population in the federal government's databases and administrative records. To the extent that it is represented through informational traces or vestiges, this segment encounters problems about population...

In what ways might the digital renminbi (RMB), also known as e-CNY, bolster China's efforts to internationalize its currency? Utilizing Susan Strange's concept of currency negotiation and borrowing the concept of infrastructures from science, technology, and society studies, this article argues...

In late 2021 and early 2022, CEMLA conducted a thorough survey involving 12 central banks to analyze key aspects related to the potential implementation of a Central Bank Digital Currency (CBDC). The findings revealed prevalent issues and objectives regarding digital payments in the region, as...

The surge in digital payment technologies and the swift transition to a cashless society have propelled the adoption of embedded payment systems, marking a significant shift in the payments landscape. Despite its increasing prevalence, the factors influencing the intention to use embedded...

Any sale of goods or services is accompanied by an invoice of some form. Through the invoice, a seller and buyer exchange information on the quantity, nature, price and (often) payment due date for the goods or services sold. Invoices therefore play a crucial role in facilitating the sale and...

Any sale of goods or services is accompanied by an invoice of some form. Through the invoice, a seller and buyer exchange information on the quantity, nature, price and (often) payment due date for the goods or services sold. Invoices therefore play a crucial role in facilitating the sale and...

The European Payment Observatory of commercial transactions (EU Payment Observatory) was set up in 2023 at the initiative of the European Commission to monitor trends and developments on payment performance and behaviour in commercial transactions in the EU to combat late payments. Late payments...

Late payments are a significant hurdle for the competitiveness of EU companies. Delayed payments affect firms' liquidity, thereby hampering their ability to properly operate and to invest in growth. They also make it difficult for companies to pursue the digital and sustainable transition that...

Late payments are a significant hurdle for the competitiveness of EU companies. Delayed payments affect firms' liquidity, thereby hampering their ability to properly operate and to invest in growth. They also make it difficult for companies to pursue the digital and sustainable transition that...

This paper provides insights into the determinants of currency choice in cross-border bank lending, such as bilateral distance, financial and trade linkages to issuer countries of major currencies, and invoicing currency patterns. Cross-border bank lending in US dollars, and particularly in...

This paper examines the effect of financial sanctions at the most disaggregated level possible, individual bank accounts. Using data from the Eurosystem's real-time gross settlement system TARGET2, we provide empirical evidence that sanctions imposed by the European Union on Russian banks...

Cross-border payment inefficiencies are a significant barrier to trade both within Latin America and the Caribbean (LAC) and between LAC and other regions. This paper provides a comprehensive review of historical efforts undertaken by various countries within the LAC region to address these...

This paper provides the first steps towards a theoretical and structural modelling framework through which optimal decision making in financial market infrastructures such as payments clearing and settlement systems can be assessed from a market microstructure perspective. In particular, the...

Distributed ledger technologies (DLT) are increasingly considered to enhance payment systems' and market infrastructures' functionalities like their accessibility and interoperability. We explore DLT architecture options to enable a new tiered access in the RTGS system of Chile for new payment...