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Editor’s Note

It may be too late for resolutions and too early for Lent, but in the absence of any discrete opportunity, I would like to give up political news from the United States for a while, or at least for the duration of one decoded law.

Fortunately, in the spirit of going international and exiting the frenzied US election cycle, blockchain technology and stablecoins play an important role in the latest developments in cross-border payments and settlements. It has long been one of the most talked about uses of blockchain technology.

Diplomatic scheming shows up in payments made by ordinary people in the form of higher fees between countries in conflict. However, the question of how money crosses borders through traditional alleyways is so deeply rooted that they are invisible to the average end user. This happens because, although national payment systems have been streamlined with new technologies, they largely involve large commercial banks that rely on networks and systems set up by their respective central banks. Many of these systems are clumsily attached to each other between central banks.

The rise of stablecoins has inspired many major banks, otherwise turned off by crypto asset volatility, to rethink these systems. JPM Coin is perhaps the most famous – until central banks joined, of course.

This week there has been big news in commercial and central bank stablecoins, as well as the financial sinews linking them together. Unfortunately for the average user, these will remain the most permitted blockchains for the foreseeable future. However, the retail central bank’s digital currency is also moving forward.