In early November 2022, the IMF published a working paper on a multi-currency exchange and contracting platform (known as X-C) that the authors said could reduce the cost of FX transactions.
X-C envisages a multi-currency environment where intermediaries act as broker-dealers and compete to attract trade from clients. The proposal describes multi-currency auctions as a robust solution that generates competitive outcomes and can be implemented entirely through smart contracts.
The proposal allows for centralized order-book exchanges for dealers, but with dealers also competing on the common platform.
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