Interoperability Between Central Bank Digital Currency Systems and Fast Payment Systems: A Technical Perspective

The World Bank Group’s ITS Technology and Innovation lab (ITSTI) has been actively conducting hands-on technological experimentation, and building internal knowledge and expertise about emerging technologies and innovations related to central bank digital currencies (CBDCs) and other payment system innovations. As part of this effort, the technology team has identified various pillars: for example, programmable money, privacy-enhancing techniques, the interoperability of networks and systems, and offline payments. ITSTI Lab has worked closely with the World Bank Finance, Competitiveness, and Innovation Global Practice and other ITS teams to co-create and share knowledge on emerging technology designs in CBDC with partners in both the public and private sectors. This Knowledge Brief outlines some of our learnings and insights from internal exploration and experimentation on CBDC interoperability with existing payment systems like fast payment systems (FPS).