Multi-currency settlement refers to the process of finalizing transactions involving two or more different national or digital currencies. This capability is essential for international trade and cross-border financial operations. Distributed ledger technology offers potential improvements by enabling faster and more efficient exchanges of various monetary units. It streamlines the exchange of value across distinct currency denominations.
Context
The advancement of multi-currency settlement systems using blockchain technology is a significant area of focus for central banks and financial institutions. Projects explore the use of central bank digital currencies or tokenized commercial bank money to facilitate real-time, atomic swaps. Key discussions center on regulatory harmonization and the operational complexities of integrating diverse currency systems on a single ledger.
The consortium is establishing a compliant, shared-ledger framework to enhance global liquidity and reduce correspondent banking friction for wholesale settlement.
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