Interoperable Payment Systems and the Role of Central Bank Digital Currencies
5 Pages Posted: 25 May 2020
Date Written: May 18, 2020
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 bank-based payment systems.
Keywords: Digital currency, payment system, interoperability
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