Many readers may not be aware of the Financial Stability Board (FSB), which was formed as a revised version of a similar group out of the G20 in 2009, and eventually resourced as an enduring organization.
The G20 have been advocating for improved cross-border payments systems since 2014. A recent article in Finextra provides an update on the G20 roadmap for better cross-border payments, with the FSB publishing a couple of progress reports to be delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Washington DC this week.
Apparently, the FSB and BIS’ Committee on Payments and Market Infrastructures (CPMI), along with other partners, are starting to prioritize future work based on analysis and feedback. It seems that there are any number of initiatives already out there, so it’s not 100% clear what’s new here.
There are three priority themes identified in the roadmap update, which the article states as:
- Payment system interoperability and extension
- Legal, regulatory and supervisory frameworks
- Cross-border data exchange and message standards
As we’ve previously mentioned, the G20 has been expecting work that has targets for enhancing the cost, speed, access, and transparency of cross-border payments. Originally, that had consumers as the main priority, but relative enhancements are good for all use cases in the end. The roadmap has a 2027 end date for achieving all these goals, so with other initiatives well under way, this is more or less a way to keep some standardization in approaches.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group.