Toward Payment-Centric Model of Global Financial Regulation

Abstract

The objective of this paper is to provide an overview of the current state of the regulatory trends in cross-border payments, to systematize international documents in this sphere, and to identify conceptual approaches and the main problems. The main focus is given to the G20 Roadmap for Enhancing Cross-border Payments, primarily Area E which deals with influence of new means of payment (CBDC, stablecoins) on the improvement of cross-border payments, with a secondary focus on projects of multilateral payment platforms. The authors assume global financial regulation to be more payment-centric, since cross-border payments cover the intersection of important policies: regulation of the financial market, macro-prudential regulation, monetary policy, development of international trade, global crypto assets regulation, and combating illicit financial flows in the world economy. Global regulation of cross-border payments creates the possibility of making a profound contribution into such regulatory targets as financial inclusion, financial integrity, financial stability, cyber-security, and financial consumer protection.KeywordsPaymentsCBDCStablecoinsG20FSBFATFBISCPMIFinancial inclusionFinancial integrityFinancial stability