In a speech at Harvard Law School, Jay Shambaugh, Under Secretary of the US Treasury for International Affairs, highlighted the position of India’s Unified Payments Interface (UPI) in advancing bilateral ties with nations like Singapore and the United Arab Emirates. He acknowledged that India’s efforts on this space have been commendable, showcasing UPI’s world affect.
Cross-border payment improvements gaining traction
Shambaugh additionally famous that a number of ASEAN international locations aspire to interlink their quick payment methods on a multilateral scale, signifying a rising curiosity in cross-border payment improvements.
Modernizing legacy payment methods
Numerous initiatives are already underway to modernize legacy payment methods. Banks, payment service suppliers, system operators, and monetary market infrastructures are investing in enhancing the velocity, cost-effectiveness, transparency, accessibility, and effectivity of their payment methods. For instance, the adoption of the ISO 20022 messaging customary is enhancing knowledge richness and selling quicker, extra dependable payment processing.
G20 funds roadmap fuels near-term progress
Shambaugh emphasised that the G20 Payments Roadmap is steering efforts towards alternatives for tangible near-term developments. Notably, one of many three major motion areas of the G20 roadmap is “payment system interoperability and extension.” This facilitates improved payment system connectivity and operational alignment alongside key corridors, in the end enabling prompt transfers and settlements throughout methods.
Exploring the way forward for funds
Shambaugh additionally highlighted that jurisdictions are concurrently exploring the longer term panorama of cash and funds, together with experiments with cross-border Central Bank Digital Currencies (CBDCs) and Distributed Ledger Technology (DLT)-based funds. These improvements provide the potential to create extra environment friendly and clear cross-border payment methods whereas lowering related dangers.
Jay Shambaugh praised India’s UPI system for its position in enhancing bilateral connections and expressed optimism about the way forward for cross-border funds powered by new applied sciences.
