📷 Image Credits: bis.org
Project Nexus, a BIS Innovation Hub initiative aimed at enhancing cross-border payments by connecting domestic instant payment systems globally, has reached a significant milestone with the completion of the comprehensive blueprint for Phase Three. The recent announcement by the Bank for International Settlements (BIS) and its partners, including central banks and IPS operators from countries like Malaysia, the Philippines, Singapore, and Thailand, marks the readiness to move towards the next stage of seamlessly connecting their instant payment systems.
Phase Four of Project Nexus is expected to witness the expansion of the participant base, with the addition of the Reserve Bank of India, which will bring in the world’s largest IPS, the Unified Payments Interface (UPI). This move signifies a major step towards achieving interoperable cross-border payments on a global scale.
Governor Abdul Rasheed Ghaffour of Bank Negara Malaysia expressed enthusiasm about the progress, highlighting the collaborative efforts of ASEAN central banks in partnership with the BIS to establish a world-leading cross-border payment infrastructure. The completion of Phase Three sets the stage for implementing a next-generation cross-border payment network that will benefit not only the participating nations but also enhance global payment connectivity.
Agustín Carstens, the BIS General Manager, emphasized the significance of Project Nexus in revolutionizing cross-border payments and aligning with the G20 cross-border payments program. With the potential to connect 1.7 billion people globally, Nexus aims to streamline instant payments across borders, making transactions easy and cost-effective.
Nexus aims to standardize the connectivity between domestic IPS, eliminating the need for custom connections for each new country. By simplifying the process through a single connection to Nexus, IPS operators can now reach all other countries in the network efficiently.
The completion of Phase Three allows for the establishment of a new entity, the Nexus Scheme Organisation (NSO), responsible for managing the Nexus scheme and driving the mission of achieving instant cross-border payments at scale. While the BIS will not operate the NSO, it will provide technical advisory support as countries progress towards live implementation, fostering cooperation among members and welcoming new participants to realize Nexus’s global vision. The launch of Project Nexus Phase Four signifies a significant advancement in revolutionizing cross-border payments and establishing a seamless international payment network.
