Global Payments Layer

Definition ∞ A global payments layer constitutes an interconnected network or system that enables the transfer of funds across international borders. This layer aims to provide a standardized and efficient means for conducting cross-currency transactions. It reduces the complexities and costs associated with traditional correspondent banking. Such systems facilitate rapid and secure international money movement.
Context ∞ The concept of a global payments layer is frequently discussed in the context of blockchain technology and central bank digital currencies. News often highlights how distributed ledger solutions can offer a more efficient and less expensive alternative to legacy systems for international transfers. A critical future development involves the establishment of interoperable digital payment networks that span multiple jurisdictions.