A national payment system of this nature will avert the development of fragmented payment systems and ensure efficient use of liquidity within the financial system. Currently, there is interoperability within the payment cards subsector, evidenced by the “gh-Link” switch on one hand; and interoperability among international card schemes such as Visa and MasterCard on the other hand.
Second, integrating capital markets across national borders will improve risk sharing. The US is a model in this respect. Here, integrated capital markets cushion around 40% of the cyclical fluctuations among the US federal states. An additional share of 25% is smoothed via the credit markets, while fiscal policy cushions 10–20% of shocks.