New payment system designs: causes and consequences

Over the past decade the most popular design for high-value payment systems has changed, reflecting market needs and the concerns of central banks for systemic stability. Before 1990 most systems were designed on a deferred net settlement (DNS) basis but since then almost all major countries have moved to Real-Time Gross Settlement (RTGS) systems for high-value payments. They are now used widely around the world. More recently, however, hybrid systems, which seek to be liquidity-efficient, have been introduced in a small number of developed countries. This reflects attempts to achieve combinations of safety and efficiency that are acceptable both to central banks and to system participants.