Heaptalk, Jakarta — Bank Indonesia (BI), the Bank for International Settlements (BIS), in collaboration with Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, and the Bank of Thailand have completed the blueprint for Phase 3 of the Nexus Project.
This blueprint allows participating countries to interconnect their domestic instant payment systems globally. The Nexus Project is an initiative of the BIS Innovation Hub that aims to enhance cross-border payments by linking various domestic instant payment systems (IPS) globally.
Governor of Bank Indonesia, Perry Warijyo, emphasized that the projects aim to reach interoperable cross-border payments rooted in a robust policy framework, inclusivity, and effective risk management. By prioritizing those principles, the goal is to enhance a seamless and secure cross-border payment system that promotes economic growth, financial inclusion, and sustainable development.
The Nexus Project is the first BIS Innovation Hub project in the field of payments to move towards implementation. BIS advises the Nexus Project, formulates the operational scheme, and opens opportunities for new participants worldwide.
Nexus is designed to standardize the way domestic IPSs connect to one another. Rather than an IPS operator building custom connections for every new country it connects to, the operator only needs to make one connection to Nexus. This single connection would allow the IPS to reach all countries in the network.
In its further plan, Bank Indonesia will continue associating with the project with special observer status. They took part in Phase 3 and will continue in this capacity to observe and follow the project in the subsequent development stage. The Nexus project will expand into Phase 4 development, focusing on forming a new entity, the Nexus Scheme Organization (NSO), which the participating countries will wholly own.
“This project is the early BIS innovation Hub program in which central banks are moving towards a live phase with instant payment providers. When implemented, it will greatly enhance cross-border payments aligned with both the G20 cross-border payments program and our mission to achieve public interest in technology to back central banks and improve the functioning of the financial system,” concluded the BIS General Manager Agustin Carstens.
