Building blocks for a roadmap to enhance cross-border payments: letter to the G20
This letter from the FSB Chair, Randal K. Quarles, to the G20, accompanied a report setting out building blocks for a roadmap to enhance cross-border payments. The report, by the Committee on Payments and Market Infrastructures (CPMI), was welcomed by the FSB. The CPMI report sets out the necessary elements to address problems with the high costs, low speed, limited access and insufficient transparency of cross-border payments, highlighted by an FSB report published in April.
The publication of the CPMI report marks the second of a three-stage process, coordinated by the FSB at the request of the G20, to develop a roadmap to enhance cross-border payments. The report was delivered to G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting on 18 July.
The G20 at is February 2020 Finance Ministers and Central Bank Governors meeting asked the FSB to coordinate a three-stage process to develop a roadmap to enhance cross-border payments:
Assessment (Stage 1): In its April report the FSB, in coordination with relevant international organisations and standard-setting bodies assessed existing arrangements and challenges.
Building Blocks (Stage 2): The Committee on Payments and Market Infrastructures (CPMI) led the work on creating building blocks of a response to improve the current global cross-border payment arrangements. The report sets out areas where further public sector work could assist in moving to an improved cross-border payments system and in public goods or removing unnecessary barriers.
Roadmap (Stage 3): Building on the previous stages, the FSB will coordinate, with CPMI and other relevant international organisations and standard-setting bodies, the development of a roadmap to pave the way forward. In particular, the FSB will report to the G20 on practical steps and indicative timeframes needed to do so. The three-stage process will be submitted as a combined report to the G20 in October 2020.