?? Unveiling Intrasettle: The Inner Workings of a Groundbreaking Multi-CBDC Platform for Streamlined Cross-Border Settlements ????
Simplifying and Streamlining Cross-Border Transactions with Central Bank Digital Currencies
Introduction:
Cross-border payments have long been a complex and time-consuming process, involving multiple steps and intermediaries. Intrasettle, a multi-CBDC platform, aims to revolutionize this process by simplifying and streamlining cross-border transactions with Central Bank Digital Currencies (CBDCs). This article will explore how Intrasettle works, its key features, and the future of cross-border payments.
?? Breaking Down the Cross-Border Payment Process ??:
A typical cross-border payment includes multiple steps or sub-processes, such as the exchange of local currencies for foreign currencies, the transfer of the currencies, and supporting non-settlement processes like AML/CFT compliance. With Intrasettle, these steps are split into discrete sub-processes that can be performed separately and categorized into foreign exchange, cross-border settlement, and non-settlement processes.
As banks can now hold CBDCs in different currencies on the platform, they can perform foreign currency exchange independently of the transfer, holding the foreign currency until it is used for transfers.
A cross-border transfer with Intrasettle:
??Technical Flexibility and Policy Choices??
Intrasettle's technical design and underlying architecture, is based on the Direct CBDC model, enable flexibility to support different policy choices. For example, central banks can amend the approval routing rules to switch between the hybrid CBDC and direct CBDC models.
??Cross-Border Settlement and Non-Settlement Processes????:
Cross-border settlement is subject to the laws of the involved jurisdictions, requiring common rules agreed upon by all participants. Non-settlement processes, such as KYC, AML/CFT, and foreign exchange controls, are subject to individual countries' regulatory policies. The separation of these processes allows for the adherence to different jurisdictions' regulatory policies while streamlining the settlement process.
??Foreign Currency Exchange??:
Intrasettle focuses on FX settlement, with FX trading performed outside the platform using existing means. The platform provides interfaces for settlement to take place within the platform on a real-time gross settlement basis.
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?? Transaction types and functional requirements ??
The Sandbox can test three transaction types:
?? Next steps ??
The vision for Intrasettle is a global network of connected CBDC platforms and interoperable CBDCs, likely implemented as a series of regional platforms. The roadmap includes developing and testing a regional multi-CBDC platform, developing a detailed platform rulebook, reviewing legal and regulatory frameworks, forming governance committees, and conducting large-scale technical development and testing.
Conclusion:
Intrasettle has the potential to revolutionize cross-border payments by simplifying and streamlining the process using CBDCs. With its innovative approach to separating settlement and non-settlement processes and the use of smart contracts, the platform offers a promising solution to the complexities of cross-border transactions. As Intrasettle continues to develop and expand.
While the current Intrasettle solution is focused on providing a product for central banks using central bank money, Intrasettle has also embarked on developing a solution for instant commercial bank settlement using commercial bank money. By harnessing the key features of these technologies — programmability, immutability, and traceability — Intrasettle aims to make digital clearing and settlement more efficient, reliable, and secure.?
We are excited to continue our journey towards revolutionizing the world of cross-border payments and invite you to join us in exploring the potential of Intrasettle. Stay tuned for updates and further developments! ????