CBDCs, with their promise and potential, symbolize a broader shift—a movement towards a more efficient, seamless digital infrastructure, shaping the future of international trade, cross-border payments, and global financial integration. However, with transformative potential comes inherent complexity. As fiat currencies become increasingly intertwined with technology, significant implications for privacy, human rights, cybersecurity, digital financial inclusion, and the movement of money across borders for international trade, aid, investment, and other payments arise. If designed without a common framework of standards and collaboration, a shortsighted and fragmented approach to CBDC development could result in the emergence of isolated systems.

At the core of establishing standards lies the concept of interoperability—the ability of diverse systems to interact seamlessly and reduce frictions. In this context, interoperability extends beyond technical objectives alone; it requires a broader framework that includes regulatory and governance standards, paving the way for streamlined cross-border transactions, reducing operational frictions, and bolstering trust among participating entities. While not a panacea, technical, regulatory, and governance benchmarks are instrumental in navigating the complexities of international payment systems. To achieve interoperability, CBDC exploration should prioritize thorough discussions on establishing technical, regulatory, and governance standards.