Front Matter Page

FINTECH NOTES

DISTRIBUTED LEDGER TECHNOLOGY EXPERIMENTS IN PAYMENTS AND SETTLEMENTS

Ghiath Shabsigh, Tanai Khiaonarong, Harry Leinonen

NOTE/20/01

Front Matter Page

FINTECH NOTE

Distributed Ledger Technology Experiments in Payments and Settlements

Prepared by Ghiath Shabsigh, Tanai Khiaonarong, and Harry Leinonen (IMF Consultant)

June 2020

INTERNATIONAL MONETARY FUND

Front Matter Page

©2020 International Monetary Fund

Cover Design: IMF Multimedia Services

Composition: Te Grauel Group

Names: Shabsigh, Ghiath. | Tanai Khiaonarong. | Leinonen, Harry. | International Monetary Fund, publisher.

Title: Distributed ledger technology experiments in payments and settlements / Prepared by Ghiath Shabsigh, Tanai Khiaonarong, and Harry Leinonen (IMF Consultant).

Other titles: FinTech notes (International Monetary Fund).

Description: Washington, DC : International Monetary Fund, 2020. | FinTech notes. | June 2020. | Includes bibliographical references.

Identifiers: ISBN 9781513536330 (paper) | 9781513536354 (web pdf)

Subjects: LCSH: Blockchains (Databases). | Financial services industry—Technological innovations. | Electronic funds transfers.

Classification: LCC QA76.9.B56 S53 2020

DISCLAIMER: Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. Te views expressed in Fintech Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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Contents

  • Abbreviations
  • Executive Summary
  • Introduction
  • Distributed Ledger Technology
  • Experiments and Research
  • Risk Management Issues
  • Financial Market Infrastructure Standards
  • Potential Impact on the International Monetary System
  • Conclusion
  • Annex I. List of DLT Experiments and Research in Payments and Settlements
  • Annex II. Distributed Ledger Technology Protocols
  • References

Abbreviations

BOC

Bank of Canada

CBDC

central bank digital currency

CCP

central counterparty

CLS

CLS Bank International

CPMI

Committee on Payments and Market Infrastructures

CPSS

Committee on Payment and Settlement Systems

CSD

central securities depository

DLT

distributed ledger technology

DVP

delivery versus payment

FMI

financial market infrastructure

GPI

Global Payments Innovation

IOSCO

International Organization of Securities Commissions

LSM

liquidity saving mechanism

LVPS

large-value payment system

MAS

Monetary Authority of Singapore

PFMI

Principles for Financial Market Infrastructures

PKI

public key infrastructure

RTGS

real-time gross settlement

SWIFT

Society for Worldwide Interbank Financial Telecommunication

USC

Utility Settlement Coin

Distributed Ledger Technology Experiments in Payments and Settlements
Author: Mr. Ghiath Shabsigh, Mr. Tanai Khiaonarong, and Mr. Harry Leinonen