About the Book
This white paper delves into the transformative role of digital currencies, such as Central Bank Digital Currencies (CBDCs) and cryptocurrencies, in cross-border trade. As international trade becomes increasingly digitized, these currencies are reducing transaction costs, accelerating payment times, and enhancing security through blockchain technology. CBDCs, backed by national governments, offer the stability of fiat currencies with the efficiency of digital payments, while cryptocurrencies and stablecoins provide decentralized alternatives that are particularly valuable in regions with limited banking infrastructure.
The report outlines the key benefits of digital currencies, including reduced transaction times, improved transparency, and minimized currency exchange risks. It also addresses challenges such as regulatory uncertainty, currency volatility, and cybersecurity risks. The paper emphasizes the need for collaborative frameworks to ensure interoperability and secure integration of digital currencies into trade systems. Businesses and policymakers are encouraged to invest in digital payment infrastructure and embrace innovative solutions to stay competitive in the evolving global trade landscape.
