FRB Chair Highlights Progress toward a More Accessible and Transparent Cross-Border Payments Ecosystem

Federal Reserve Board ("FRB") Chair Jerome Powell emphasized the importance of collaboration to create a more inclusive, efficient and transparent cross-border payments ecosystem.

In remarks at a conference hosted by the Committee on Payments and Market Infrastructures, titled "Pushing the Frontiers of Payments: towards Faster, Cheaper, More Transparent and More Inclusive Cross-Border Payments," Mr. Powell asserted that only through the combined efforts of multiple jurisdictions, and by engaging all stakeholders, will solutions to cross-border payment systems issues be possible. He also praised the progress made by the Financial Stability Board ("FSB") towards developing a "roadmap" for how the global community can improve cross-border payments.

Mr. Powell stated that the Federal Reserve is currently making improvements in the payments system (both in "improving existing rails and laying new tracks,") through the FedNow Service. He also outlined efforts by the FRB to experiment with central bank digital currencies and assess their feasibility in aiding central banks to achieve their public policy objectives.

On the subject of the public sector's ability to create a consumer-facing infrastructure that enhances public engagement with the financial system, Mr. Powell stated that the combination of digitalizing financial services and improving consumer experience can facilitate financial inclusion, especially in unbanked communities.