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.

Due to the virus outbreak, the municipal securities market has recently been under considerable strain as investors have become reluctant to purchase municipal securities. As a result, interest rates on municipal securities have increased significantly. At the same time, states, cities, and counties are facing severe liquidity constraints resulting from the increase in state and local government expenditures related to the COVID-19 pandemic and the decrease and delay of certain tax revenue. By ensuring the smooth functioning of this market, particularly in times of strain, the Federal Reserve is providing credit that will support families, businesses, and jobs in communities, large and small, across the economy. The immediate purpose of the Municipal Liquidity Facility is to enhance the liquidity of the municipal securities market by increasing the availability of funding to eligible States, Cities and Counties through Tax Anticipation Notes (“TANs”), Tax and Revenue Anticipation Notes (“TRANs”), Bond Anticipation Notes (“BANs”), and other similar short-term notes from eligible issuers (collectively, “Notes”). The eligible issuer’s proceeds from its notes sales can in turn be used to support its political subdivisions and instrumentalities, among other uses. This facility will provide a form of bridge financing to eligible issuers, and by addressing the cash management needs of eligible issuers, the facility will also encourage investors to once again engage in the municipal securities market. Of course what I’ve just covered is not an exhaustive list. The Federal Reserve Board has also announced a number of other programs designed to supply credit directly to households, businesses, and municipalities.