An interbank payment rail is a system facilitating money transfers between different banks. These rails form the fundamental infrastructure for domestic and international financial transactions, enabling banks to exchange funds and settle obligations. Examples include real-time gross settlement (RTGS) systems and automated clearing houses (ACH). The efficiency and security of interbank payment rails are critical for the smooth functioning of the global financial system.
Context
Interbank payment rails are frequently discussed in crypto news in the context of how digital assets and blockchain technology could modernize or disrupt existing financial infrastructure. Innovations such as tokenized bank deposits and wholesale Central Bank Digital Currencies (CBDCs) are being explored to offer faster, more cost-effective interbank settlements. The evolution of these rails to support digital currencies is a key area of development for enhancing the speed and transparency of global payments.
This consortium aims to architect a unified, regulatory-compliant payment rail, leveraging public DLT to deliver instant, capital-efficient cross-border settlement for G7 currencies.
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