Recently, new business models and arrangements have also emerged to address the prevailing 1/3  BIS central bankers' speeches  gaps in the cross-border payments space. These among others include the introduction of SWIFT’s Global Payment Initiative (SWIFTgpi), a pioneering attempt at linking payment infrastructure through the experimental usage of distributed ledger technology. These have the potential to improve efficiency, allowing faster, secure and transparent cross-border payments. At the ASEAN level, efforts have been made to foster greater regional integration through linkages of the real-time retail payment infrastructures (RT-RPS). The ASEAN Payments Policy Framework was established as a set of principles to facilitate the linkages of RT-RPS. Bilateral arrangements have also been established by several ASEAN countries, including Malaysia, to enhance the efficiency of cross-border payments. For instance, linking between Singapore’s PayNow and Thailand’s PromptPay to facilitate more seamless cross-border payment transactions in real-time, and similarly to extend the linkage to Malaysia’s DuitNow. Once operationalised, this could enable cross-border payments between participating financial institutions to be virtually as seamless as domestic transactions. At the national level, Bank Negara Malaysia (BNM) is directing its regulatory and supervisory resources towards safeguarding the safety and soundness of payment and remittance systems. We are stepping up efforts to reinforce public confidence and acceptance of e-payment and eremittance services, particularly among underserved segments. We are also working to futureproof the country’s payment infrastructure to meet evolving market needs, including migrating to the ISO 20022.

A BIS survey in January 2020 found that more than 80% of central banks, compared to only 70% in a survey the year before, are looking into CBDC, suggesting that there is greater openness to issuing a CBDC than a year ago. The survey also shows that emerging market economies report stronger motivations and a higher likelihood that they will issue CBDCs. Although many central banks are considering CBDCs, they appear to be proceeding cautiously, with only about 10% of central banks say they are likely to issue a general purpose CBDC in the short term and 20% in the medium term. Whether it is for DLT, CBDC or other innovations in financial technology, it is important for central banks to continue cross-border cooperation in order to realise successful digital transition. Harmonisation of standards and data privacy across jurisdictions; information-sharing; and support for cross-border integration through the various international platforms, are some of 2/3  BIS central bankers' speeches  the ways for central banks to contribute to this transition. Preserving safety and soundness As we embrace financial innovation, we need to be mindful of the risks of unintended consequences such as cyber threats and spread of illicit finance. These areas, which were already the focus of central banks, have become increasingly important with the advent of the Covid-19 pandemic. An increasing number of cyber criminals are exploiting the current pandemic for their own objectives.