Enhancing Global Trade: Leveraging Central Bank Digital Currency in Optimising Cross-Border Payments

Central Bank Digital Currency (CBDC) is vital for enhancing cross-border payment efficiency in the digital age. This study aims to determine how CBDC can improve the system’s effectiveness for making payments across international borders. This paper explores the benefits of CBDC to enhance cross-border payment processes. Implementing CBDCs in cross-border payment systems can alleviate privacy, data safeguards, transparency, and security concerns. Key insights and lessons from various cross-border projects are elaborated, providing future directions for the cross-border CBDC projects. This study also discusses policy recommendations that can be implemented to make the most of CBDCs’ benefits in cross-border payment systems.