Interview: Unlimit CEO Irene Skrynova on BRICS’ fast payments push and its impact on global finance

Global Payments CEO of Unlimit, Irene Skrynova, discussed BRICS' efforts to connect fast payment systems and explore interoperability among Central Bank Digital Currencies (CBDCs) in an interview. Connecting domestic payment systems is the first step, but linking two systems for cross-border payments involves currency conversion and liquidity, which adds complexity.

Direct connections between two domestic systems are feasible where currencies are actively traded, but where they are not, a bank or provider must hold funds in both currencies or route the conversion through a third currency, typically the dollar. The most viable corridors are those with significant two-way flows; otherwise, providers face imbalances and rebalancing costs.

While CBDCs and instant-payment linkages gain headlines, the immediate impact on global finance is more subtle. Instant payment systems have already gained deep domestic adoption, allowing customers to experience faster cross-border transactions without changing their usual banking apps. CBDCs, on the other hand, settle transactions between banks in the background, altering the settlement process without changing the customer's visible experience.

The real shift lies in building new networks that handle both instant payments and FX conversion, providing liquidity on both sides, and directly settling between institutions.

The near-term reality is that BRICS can create the technical infrastructure but cannot legislate the foreign exchange (FX) volumes or providers' willingness to make these connections commercially competitive. This remains a market question rather than a policy one. CBDCs may reshape settlement without altering the customer's perception, while connected instant-payment systems will expand corridor by corridor as customers continue to use familiar systems.

The process is less dramatic than the headlines suggest. For example, linking India's UPI (Unified Payments Interface) and Singapore's PayNow resulted in quicker money transfers between the two nations, but the underlying settlement still relied on existing correspondent banking arrangements. Customers may perceive the payment as instant, yet banks are still utilizing traditional infrastructure.

A genuinely instant cross-border payment would require new networks that manage FX conversion, liquidity, and direct settlement between institutions, which is not yet universally available.

The technical challenges are further compounded by the operating hours mismatch between instant payment systems, which operate 24/7, and the foreign exchange markets that are not always active. Providers must hold sufficient currencies in advance or accept the risk of not being able to hedge immediately, adding hours to the process for a payment that appears instantaneous to the customer.

Limited liquidity in less frequently traded currencies and uneven flows exacerbate these issues. While central banks can connect payment systems and establish the necessary rules, they cannot ensure that commercial providers will have sufficient liquidity to make the payments competitive. This depends on volumes, demand, and the viability of the business case for providers, leading to potential rate disadvantages for customers and governance complexities that scale with each new market added.