- International payments are slow and expensive due to reliance on outdated correspondent banking models, causing delays and higher costs for businesses and remitters.
- Alternatives to improve cross-border payments include central bank digital currencies (CBDCs), stablecoins, and tokenized bank deposits, with the latter emerging as a third contender.
- CBDCs are cautious and stable, issued by central banks with no credit risk, but progress has been hindered by policy shifts, such as a U.S. ban on CBDC development.
- Stablecoins gained momentum in 2025 with U.S. regulatory support, enabling fast, agile cross-border payments driven by private sector incentives.
- Tokenized bank deposits combine digital efficiency with existing banking regulations, offering stability, deposit insurance, and a smooth transition for users, making them a durable model for future payments.