As an applied state, the new economics of Perfect Market Equilibrium asserts itself, by dismantling and transitioning the core construct of global markets, from pre-internet intermediated wholesale to the new more efficient post internet one of dis-intermediated P2P. And in so doing, re-writes fundamental tenets and principles of markets and advances Equilibrium Theory under a new macro-economic strand. And this, notably where financial institutions no longer act as the agenting intermediaries to market creation and where the predominant concerns of systemic risk and resiliency, associated with an ever expanding global economy, no longer exist.

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The institutional 'wholesale' OTC Forex Market and International Inter-bank Clearing and Settlement system are the existing global facilitating conduits of money. As legacy systems and processes of an age when markets could only be connected through institutions, Central Banks typically lament the deficiencies of the institutional cross border movement of money on ‘cost, speed, access and transparency' (Bank of England website). And go on to further add; 'current initiatives under way in the industry go some way to address the challenges identified. Nevertheless, our conclusion is that these are incremental changes, and in the longer term there may need to be a more fundamental paradigm shift to address these challenges in a more holistic way, enabled by new technology platforms.’ p.4, Bank of England ‘Cross Border Inter-Bank Payments and Settlement’ 

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The International Inter-bank Clearing and Settlement system also suffers from the pre-internet intermediated wholesale complexities and risk of its OTC Forex counterpart, notably in the form of inter-bank ‘vostro nostro’ account settlement debits and credits. Interbank ‘vostro nostro’ account settlement, as a core system methodology, dating back to 13th and 14th century Italian banking, underpins the “correspondent banking” model, …which has been the foundation of cross-border payments and settlements for centuries.’ p.6, Bank of England, ‘Cross Border Inter-Bank Payments and Settlement’ 

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All solutions promoted by financial institutions and indeed Central Banks themselves, espouse conventional wholesale methodologies to the performance issues surrounding global fiat cross border payments and indeed, even more erroneously to the future architecture of CBDCs, which are inherently P2P by nature, not wholesale. If, at the core of advocated systemic evolution are centuries old methodologies, then changes can only be incremental and will fail to provide the aspired 'paradigm shift'.

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In that Perfect Market Equilibrium structurally changes the fundamental tenets and principles of markets and provides for core systemic change, as a consequence, it also provides for the paradigm shift solution in cross border payments Central Banks have been searching for, and also the correct future architecture for cross border CBDC payments.

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That the new P2P Fintech Forex platform, operating at Perfect Market Equilibrium, never encounters shortages and surpluses to perfectly instantly self clear all trades at all times, also provides for a new Perfect Netting of cross border payments, where conventional interbank vostro nostro account debits and credits also never arise. New perfectly cleared P2P trades, can also be system consolidated with and translated into perfectly netted cross border payments, which consequently has no settlement and therein also no risk. And this to entirely dismantle the existing interbank cross border ‘correspondent’ payments model, where the role of banks (institutions) and their centuries old vostro nostro account system are now also rendered redundant, and transitioned to a new more efficient, consolidated and risk free dis-intermediated construct.

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The existing inter-bank construct often requires third party correspondents when no direct relationship exists.‘If the sender’s service provider has no presence in the beneficiary’s location, and thus cannot receive the funds there, it will need to rely on another financial institution(s) to complete the transaction on its behalf.’ Bank of England website

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Not only dispensing with the role of institutions, their systemic settlement risk and 1000s of disparate correspondent relationships, the Perfect Netting of global cross border payments, also dispenses with the need for SWIFT and complexities of its dated 'Messaging' system, where complex IBAN numbers are further appended to domestic payment account details.

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If cross border payment values between domestic payment systems are perfectly and instantly P2P netted against each other at a process consolidated P2P factored exchange rate, then the value of a remitting payment can be redirected and re-allocated as a beneficiary one within its own domestic payment system on a new P2P basis. Only domestic payment systems and domestic account payment details are consequently used!

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Domestic payment systems, such as Faster Payments, FedNow, and Eurozone's Target 2 can now be directly and seamlessly connected at the point of perfectly cleared P2P currency exchange trades, rather than through SWIFT. And this, on a new highly efficient, sovereign currency consolidated and systemically risk free basis, where cross border payments are instantly STP P2P account-to-account remitting debited and beneficiary credit processed.

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As a paradigm shift in the construct of global cross border payments, that it has no settlement or risk, allows it to perform instantly and at virtually zero cost, as the new global 'Absolute Free Flow of Money’.

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The existing inter-institutional intermediated wholesale construct can never accede to this new instant risk free, perfectly netted 'Absolute Free Flow of Money’, not least by virtue of its underpinning centuries old 'vostro nostro' account methodology. And for this reason, the cost of global cross border payments remains at an average of 7.4 % and has 2-5 day delays which adversely affects and imposes a burden on global transactions and consequently trade.  

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Currencyfair cannot 'Perfectly P2P Net' nor STP process cross border payments, for the reason, they are a Peer-to-Principal model, leading to an interrupted connectivity between remitting and beneficiary account payments. They, in fact for the most part use Swift, and therefore cannot perform better than the institutional structure, in terms of rate and performance, despite claims to the contrary.

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And neither can Wise, for the reason that, as an exchange rate 'conversion' model, there is no direct P2P interaction between parties, and consequently, no exchange rate connective link between party and counterparty, as the basis upon which to 'Perfectly P2P Net' at exchange rate factored values. As previously stated, they are a market anomaly, in that there is no rate transmission link!

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Again, the basis upon which to Perfectly P2P Net, is derived from a 'Perfect Market Equilibrium' P2P executed trade clearing, where a consolidated exchange rate factored and continuous cross border party and counterparty STP link is generated and maintained at all times. 

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This is the foundational premise upon which the paradigm shift in global cross border payments, as the new ‘Absolute Free Flow of Money’, devoid of risk, cost and banking relationships, that money can flow unimpeded within the global economy, on a new fully dis-intermediated and equalised basis.