Cross-Border Payments Integration in Latin America and the Caribbean

Download or read book Cross-Border Payments Integration in Latin America and the Caribbean written by Dimitris Drakopoulos and published by International Monetary Fund. This book was released on 2024-06-14 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cross-border payment inefficiencies are a significant barrier to trade both within Latin America and the Caribbean (LAC) and between LAC and other regions. This paper provides a comprehensive review of historical efforts undertaken by various countries within the LAC region to address these challenges. We also explore the potential of recent financial innovations, such as digital currencies and blockchain technology, to enhance cross-border payments. While new technologies do not substitute for prudent and credible macroeconomic policies, leveraging these technologies can help LAC countries reduce transaction costs and times, thus enhancing economic efficiency and fostering deeper regional and global trade relationships.