Last week the IMF published a paper on X-C, a platform for cross border payments, co-authored by the IMF and members of MIT’s Digital Currency Initiative.
The solution proposes a global centralized ledger for cross border payments in which central banks, banks and payment providers participate. An X-C platform would not just centralize payments and settlement, but also provide a foreign exchange (FX) market, hedging and compliance.
At a technical level, X-C can use a centralized database or distributed ledger (DLT), but either way, it relies on smart contracts to automate significant amounts of functionality and encryption for privacy.
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