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Tiered access in RTGS systems: A DLT-based approach

Author

Listed:
  • Cárdenas, Miguel
  • Madeira, Carlos
  • Morales-Resendiz, Raúl
  • Musa, Miguel
  • Sanclemente, Mario
  • Sanz-Bunster, Leon

Abstract

Distributed ledger technologies (DLT) are increasingly considered to enhance payment systems’ and market infrastructures’ functionalities like their accessibility and interoperability. We explore DLT architecture options to enable a new tiered access in the RTGS system of Chile for new payment service providers (PSP). We find that by introducing decentralized apps (DApps) the RTGS system would become more accessible and interoperable by enabling a tiered access to new participants. Our work also suggests that central banks exploring design alternatives for retail Central Bank Digital Currencies (CBDC) could find relevant our approach as a pivot to build a far-reaching PSP network.

Suggested Citation

  • Cárdenas, Miguel & Madeira, Carlos & Morales-Resendiz, Raúl & Musa, Miguel & Sanclemente, Mario & Sanz-Bunster, Leon, 2024. "Tiered access in RTGS systems: A DLT-based approach," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(1).
    • Handle: RePEc:eee:lajcba:v:5:y:2024:i:1:s2666143823000376
    DOI: 10.1016/j.latcb.2023.100116
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    References listed on IDEAS

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    More about this item

    Keywords

    RTGS; DLT; Real time gross settlement; Distributed ledger technology; Blockchain; Payment service providers; Financial market infrastructures; PSPs; FMIs; Central bank digital currencies; CBDC;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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