Can CBDCs solve the ills of cross-border wholesale payments?

Nobody doubts that cross-border payments could be more efficient and less laden with intermediaries. But are JPMorgan and Oliver Wyman right to suggest that central bank digital currencies are the answer?

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A new report from JPMorgan and Oliver Wyman argues that a multiple central bank digital currency (mCBDC) network could save global corporates $100 billion a year in cross-border transaction costs.

Part of the report is an analysis of the way that wholesale payments work across borders, a $24 trillion sector of the industry fraught with challenges and inefficiencies in which global corporates incur more than $120 billion in total transaction costs every year.

This is widely understood.