Press release: CPMI and IOSCO publish final guidance on stablecoin arrangements confirming application of Principles for Financial Market Infrastructures (bis.org) 13. Specifically the stablecoin should be convertible into other liquid assets, as soon as possible, at a minimum by the end of the day and ideally intraday, in line with Key Consideration 5 of the PFMI  . 14. Financial Stability in Focus (bankofengland.co.uk) 15. See in particular section 4.6 of New forms of digital money | Bank of England. 16. See for example the development of JPM coin and Onyx, or the action of a consortium of banks and FMIs in founding FNality. 17. Prominent examples include the Regulated Liabilities Network  and the USDF Consortium  . 18. This was set out in particular in the Furman Review - Unlocking digital competition, Report of the Digital Competition Expert Panel - GOV.UK (www.gov.uk) 19. Innovation in post trade services - opportunities, risks and the role for the public sector − speech by Sir Jon Cunliffe | Bank of England. 20. Bank of England publishes policy for omnibus accounts in RTGS | Bank of England 21. For example, Fnality, which was recognised  late last year as a regulated payment system. 22. The Bank consulted on the Future Roadmap for the RTGS system in Spring 2022. Earlier this year we issued a response to that consultation setting out that we will prioritise features supporting innovation and global initiatives, which include synchronised settlement, extended operating hours and non-payment APIs.

And we should expect that trend to continue for a number of reasons. First, and most obviously, what I have called the digitalisation of everyday life will continue. The growth of internet commerce or use of banking and payments apps, for example is forecast to grow/unlikely to stop. Second, there are further developments in train within existing payment systems, infrastructure and regulatory frameworks. These include Pay.UK’s development of the New Payments Architecture[5]. The Bank of England is well advanced in the build and implementation of a new central bank real time payment system (RTGS), the central rail of the current UK payments infrastructure. This renewal programme will increase resilience and access, and offer wider interoperability, improved user functionality and strengthened end-toend risk management of the UK’s High Value Payment System. As announced this morning, the government and regulators[6] will expand the Open Banking framework through making improvements on API performance, improving the provision of information sharing to third party providers and working towards additional functionalities, such as variable recurring payments. Third, and looking a little further into the future, over the last decade a set of newer technologies have emerged which may have the potential for a further transformation in payments. I am referring here to technologies that have been pioneered and refined in the crypto world, such as tokenisation, encryption, distribution, atomic settlement and smart contracts. These developments have been much hyped of course, and one could not say it was a certain bet that they will be as transformative as some have claimed.