WEF世界经济论坛-Connecting-Digital-Economies-Policy-Recommendations-for-Cross-Border-Payments_36页_4mb

Summary of "Connecting Digital Economies: Policy Recommendations for Cross-Border Payments"

Core Content

This report by the World Economic Forum, published in June 2020, focuses on the challenges and opportunities in the global cross-border payments landscape. It highlights the increasing importance of digital trade and the role of digital payments in enabling global commerce, especially in the wake of the COVID-19 pandemic. The report outlines four key areas that require policy attention: market barriers, standards and interoperability, security and trust, and innovation enabling oversight. It provides recommendations to governments and regulators to promote a more efficient, secure, and inclusive digital payments ecosystem.

Main Challenges

• Market Barriers: Protectionist measures such as domestic infrastructure mandates, forced data localization, and licensing and equity requirements for foreign firms are preventing the global expansion of payment services and limiting competition.
• Standards and Interoperability: Diverging regulatory and technical standards across countries are creating friction in cross-border payments and hindering the development of a unified digital payments framework.
• Security and Trust: Cross-border payments are increasingly targeted by fraud and cyber threats, with many policies to address these issues being ineffective or counterproductive.
• Innovation Enabling Oversight: Lack of coordination in the supervision of payment systems across jurisdictions is leading to inefficiencies and reduced competition, especially for firms operating in multiple markets.

Key Recommendations

1. Market Barriers

• Provide, reinforce and/or extend "national treatment" for digital payment service providers to ensure they are treated equally with domestic providers.
• Create a reference paper on payment services at the World Trade Organization (WTO) to guide future trade agreements.
• Establish regional payment councils to foster collaboration between public and private sectors.

2. Standards and Interoperability

• Explore digital trade agreements to promote greater interoperability among payment systems.
• Adopt open banking guidelines to spur competition and innovation.
• Adopt international standards for public infrastructure and financial action.
• Work with the international community when developing new standards for emerging technologies and regulatory regimes.

3. Security and Trust

• Establish public-private partnerships on cybersecurity to enhance security measures.
• Encourage law enforcement cooperation and modernize mutual legal assistance treaties.
• Promote cyber hygiene through government-led programs.
• Work with the private sector to establish important consumer protections.

4. Innovation Enabling Oversight

• Explore bilateral, regional and multilateral oversight coordination to ensure consistent and effective regulation across markets.

Key Information

• Digital payments are central to the growth of digital trade and cross-border e-commerce.
• The current global payment system is highly interconnected but suffers from fragmented regulations and barriers to entry.
• Data localization policies are often ineffective and increase costs for both foreign and domestic providers.
• Licensing and equity requirements for foreign firms can limit their ability to scale and serve global markets.
• The WTO has limited commitments on digital payments, and new trade rules are needed to support modern digital commerce.
• The CPTPP and USMCA are examples of agreements that provide better protections for digital payments, though the CPTPP has limitations in its financial services chapter.

Conclusion

The report emphasizes that holistic reforms are necessary to address the interdependent challenges in cross-border payments. It calls for international cooperation, modern regulatory frameworks, and inclusive policies that support the growth of digital trade and the expansion of digital payment services globally. The goal is to reduce friction, improve efficiency, and ensure that all stakeholders, including small businesses and consumers, can benefit from the digital economy.