The Bangko Sentral ng Pilipinas (BSP), in collaboration with the Bank for International Settlements (BIS) and regional partners, announced the completion of the blueprint for the next phase of Project Nexus. This milestone paves the way for the seamless connection of instant payment systems (IPS) across borders.
Project Nexus is designed to standardize connections between domestic IPS, simplifying the process. Instead of creating individual links to each new country, operators can connect once to Nexus and access all other countries in the network. The current phase of Nexus can link 1.7 billion people globally, facilitating instant and cost-effective cross-border payments. Carstens highlighted the significant impact this can have on global markets.
“Central banks have always played a role in payments as a public good,” said Bangko Sentral Governor Eli Remolona Jr. “With Nexus, this role will be extended to cross-border payments, maximizing the network effects. Thus, the Bangko Sentral ng Pilipinas (BSP) will continue to work with the Philippine payments industry, BIS, and other interested countries towards its live implementation.”
Building on the successful collaboration in Phase Three, the upcoming Phase Four will expand the project’s scope. New participants will include the Reserve Bank of India, integrating India’s Unified Payments Interface (UPI), the world’s largest IPS. This expansion significantly broadens the potential user base and connectivity.
Phase Four will continue the cooperation between the Central Bank of Malaysia, the Monetary Authority of Singapore, the Bank of Thailand, and the domestic IPS operators from Phase Three. Bank Indonesia (BI) will maintain its involvement as a special observer, a role it held during the previous phase.
“I wish our partners in Nexus every success as they advance the project from concept to reality,” said BIS General Manager Agustin Carstens. “This is the first BIS Innovation Hub project that central banks are moving towards a live phase together with instant payment providers. When implemented, it will greatly enhance cross-border payments in line with both the G20 cross-border payments program and our mission to develop public goods in the technology space to support central banks and improve the functioning of the financial system.”
To support the transition to live implementation, the participating central banks and IPS operators have agreed to establish the Nexus Scheme Organisation (NSO). This new entity will manage the Nexus scheme and continue the mission to enable instant cross-border payments on a large scale. The NSO will be owned by the central banks and/or IPS in participating countries, and tailored to their domestic structures.
The BIS will continue to support Project Nexus through a technical advisory role, facilitating member cooperation and onboarding new participants. This support aligns with the BIS’s commitment to innovative solutions for enhancing cross-border payments, as part of the G20 Roadmap.