Global Interoperability May Be More Practical Than Global Tokenisation

Key takeaways

Existing domestic payment systems already have scale, regulation and user adoption.
APIs, ISO 20022, real-time FX and regulated settlement can connect these systems.
Tokenisation may add value in selected use cases, but interoperability should not be overlooked.

There is considerable attention on tokenisation, stablecoins and digital settlement assets. These technologies may eventually transform parts of international finance. But there is another, more immediate opportunity: make existing systems work better together.

A world in which India, the UK, Europe, the Middle East and Southeast Asia can connect their instant-payment systems through standardised interfaces could deliver significant benefits without replacing every domestic infrastructure.

The hard problems remain familiar: identity, compliance, fraud, FX, liquidity, settlement finality and dispute management. Technology can simplify these problems, but it cannot remove the need for regulated financial relationships.

A pragmatic payments strategy should therefore pursue both tracks: improve interoperability today while continuing to evaluate tokenised settlement for use cases where it provides a clear advantage.

CCPI note: This article is an independent professional perspective for information and discussion. Regulatory, legal and tax matters should be verified against the latest official requirements and, where appropriate, with qualified professionals.