RealtimeSettlement
RealtimeSettlement refers to the process of settling financial transactions in real-time, meaning that the transfer of funds occurs immediately upon the execution of a trade. This contrasts with traditional settlement methods, which can involve delays of days or even weeks. Real-time settlement is facilitated by advanced financial technologies and infrastructure, such as central bank digital currencies (CBDCs) and distributed ledger technologies (DLTs).
The primary advantage of real-time settlement is its speed and efficiency. It allows for immediate settlement
Real-time settlement also enhances transparency and reduces the need for intermediaries. Transactions are recorded on a
However, real-time settlement also presents challenges. It requires robust and secure infrastructure to handle the high
Real-time settlement is a rapidly evolving field, with ongoing research and development aimed at improving its