Interoperable Payment Systems and the Role of Central Bank Digital Currencies

Interoperable Payment Systems and the Role of Central Bank Digital Currencies

May 18,2020Working Paper No. 3867

I explain the meaning of an interoperable payment system and why interoperability is crucial for efficiency. I review some alternative approaches to interoperability, including central bank digital currencies (CBDCs), hybrid CBDCs, and two-ledger upgrades of bankbased payment systems.

Keywords
digital currency, payment system, interoperability