These participants can in turn conduct peer-to-peer payments and redeem the CBDC for reserves at the issuing central bank. Project Dunbar in the Singapore Centre is a collaboration among MAS, the Reserve Bank of Australia, Bank Negara Malaysia, and the South African Reserve Bank. Built on two open-source distributed ledger platforms (i.e. Corda and Quorum), Project Dunbar focuses on international settlements using digital currencies issued by multiple central banks. Project Dunbar has successfully developed working prototypes that have successfully resolved challenges relating to access, governance, and jurisdictional boundaries. Project Dunbar is also focused on addressing the governance issues related to operating a multi-CBDC platform. For example: Security. How do we get multiple central banks to share a common platform and mitigate national security concerns associated with sharing critical infrastructure? Access. Who should participate in such a shared platform? Non-banks should be included because not everyone has a bank account. Regulation. How do we reconcile across different laws, regulations, guidelines and protocols that govern payments. The third pathway to solving the cross-border payments problem is through private sector led blockchain based payment networks. The use of distributed ledgers for cross-border settlement need not be confined to CBDCs. 4/8  BIS - Central bankers' speeches  Securely-backed stablecoins or tokenised bank deposits issued by private sector players can also be used to enable cheaper and faster cross-border payment and settlement.

Payments connectivity, especially across borders, is a key ingredient for digital connectivity, financial inclusion, and economic integration. Sustainable finance is a powerful enabler for the net zero transition. High-quality, trusted ESG data is critical for comparable climate-related disclosures, management of environmental risks, and green and transition finance flows. Let me start with payments. The current state of cross-border payments is not fit for the 21st century. It is slow, costly, opaque, and inefficient, relying on an archaic network of correspondent banks. According to the World Bank, the global average cost for sending remittances is 6.4% of the transfer value. 1/8  BIS - Central bankers' speeches  This is particularly painful for the migrant worker who wants to send money home or the small business which wishes to reach overseas markets through ecommerce. Solving the cross-border payments problem will yield gains in both economic efficiency and financial inclusion. This is why the G20 has made it a priority to address existing frictions in global cross border payments – to make payments cheaper, faster, more transparent and more inclusive. There are three possible ways to solve the cross-border payments challenge. one, link up faster payment systems two, build a multi-CBDC common platform three, expand private sector blockchain-based payment networks  First, link up faster payment systems. More than 60 jurisdictions have launched faster payment systems. In general, these systems enable 24/7, real-time transfers directly from a bank account or e-wallet to another bank account or e-wallet, in most cases at zero cost to the user.