THE BLUEPRINT for instant cross-border payments under Project Nexus has been completed, which would now pave the way for its live implementation, the Bangko Sentral ng Pilipinas (BSP) said on Monday.
This would “allow ready participants to work towards the next stage of seamlessly connecting their instant payment systems,” it said in a statement.
In March 2023, the BSP and four other central banks in the region announced they will connect their domestic instant payment systems (IPS) through the Bank for International Settlements’ (BIS) Project Nexus.
“We look forward to Nexus providing overseas Filipinos with a cheaper and faster means to send money to family back home, and facilitating the globalization of Filipino small and medium scale enterprises,” BSP Governor Eli M. Remolona, Jr. said.
The completion of the blueprint is under the third phase of the project. The next will be focused on work towards its live implementation.
“Phase four will see the Central Bank of Malaysia, BSP, the Monetary Authority of Singapore, the Bank of Thailand and domestic IPS operators — who worked together in phase three — joined by the Reserve Bank of India, expanding the potential user base to India’s Unified Payments Interface, the world’s largest IPS,” it said.
“Bank Indonesia (BI) will continue its association with the project with special observer status. BI took part in phase three and will continue in this capacity to follow the project in the next stage of its development.”
As part of the project’s live implementation, a Nexus Scheme Organization (NSO) will be established.
This entity will be responsible for “managing the Nexus scheme, and continuing the mission to achieve instant cross-border payments at scale.”
“The NSO will be wholly owned by the central banks and/or IPS in participating countries, depending on the specific domestic structures,” it added.
According to the BIS, the project has the capacity to connect 1.7 billion people globally. — Luisa Maria Jacinta C. Jocson
