FOR IMMEDIATE RELEASE (Washington, DC – 11 February 2025)
The Bretton Woods Committee is pleased to announce the release of A Dual Strategy to Transform Cross-Border Payments, a new report from BWC’s Multilateral Reform Working Group. This publication builds upon the G20’s 2020 commitment to make cross-border payments more affordable and inclusive by suggesting two pathways toward establishing a global instant payments system. Both pathways will require the BIS, Bretton Woods Institutions, and several public and private actors working in concert.
William Dudley, Chair of the Bretton Woods Committee and the report’s lead author, emphasized the urgency of reforming cross-border payment systems: “The need for improvement is clear. Today, executing cross-border payments is often complex, slow, and costly. We must address this pressing challenge.”
Joaquim Levy, Co-Chair of the Working Group, highlighted the roles of numerous stakeholders mentioned in the report: “Enhancing cross-border payments requires robust cooperation between public institutions and the private sector to safely navigate this evolving landscape.”
The first pathway proposed in the report centers on interlinking national Instant Payment Systems (IPS) through a hub-and-spoke model based on the Bank for International Settlements’ (BIS) Project Nexus. This would require nations to prioritize the development of their own IPS as a foundational step toward global integration. The second pathway explores the development of a unified ledger system for settling tokenized assets—an innovative approach known as the Finternet. To further this vision, the BIS, IMF, and World Bank should form advisory groups to equip central banks and regulators with the expertise required to navigate this emerging landscape.
Dudley elaborated: “In the short-run, interlinking IPS as envisioned by the Bank for Internationa Settlements’ Project Nexus is a credible way to make progress. Over the longer run, the Finternet holds promise not just for cross-border payments but also for transacting in a much broader range of financial assets. National authorities should expand domestic IPS usage and interlink via Project Nexus, while public-private collaboration and multilateral institutions like the IMF and World Bank drive progress on tokenized payments and cross-border efficiency.”
Siddharth Tiwari, Co-Chair of the Working Group, noted, “Improving the efficiency and affordability of cross-border payments holds immense potential to enhance financial inclusion and drive growth, particularly in emerging markets and developing economies.”
These key findings will be presented by William Dudley on Wednesday, February 12, from 10:00–11:00am ET, during a virtual panel titled Transforming Cross-Border Payments. Dudley will be joined by Alexandre Riccio De Oliveira of Brazil’s Inter & Co Inc., Maha El Dimachki of the BIS Innovation Hub, Tobias Adrian of the IMF, and BWC Executive Director Emily Slater.
About the Bretton Woods Committee: The Bretton Woods Committee (BWC) is the preeminent non-profit organization dedicated to effective global economic and financial cooperation. BWC demonstrates the value of multilateralism and enhances the performance of international financial institutions (IFIs) through public dialogue, advocacy, and policy analysis.
Media Contact:
Blake Ledna, Program Manager
bledna@brettonwoods.org
+1 847 421 5106