This would give banks a range of options to choose from as regards the processing of card payments. To allow for the efficient processing of card payments in SEPA, the same set of message standards as used for the processing of direct debits and credit transfers should be adopted, i.e. ISO 20022. To bridge the gap that exists between this strategic vision and the reality, a framework for the processing of card transactions should be developed and the processing infrastructure providers must subsequently develop the rules and standards that are needed in order to establish technical interoperability for card payments. Another important issue is cards standardisation, which is crucial to ensure the interoperability and harmonised use of cards across Europe. In the area of standardisation, there is a clear separation of responsibilities. First, the European Payments Council (EPC) is responsible for the strategic vision and business rules for cards. Second, the Cards Stakeholders Group is responsible for establishing functional, security and procedural requirements. Third, various market initiatives have developed implementation standards and specifications for the various domains of card payments. This is very welcome; however, work on the implementation of these specifications is lagging behind and should be accelerated. In the field of security certification for cards and terminals, a set of implementation specifications have been developed by the Common Approval Scheme (CAS). However, governance-related aspects of the SEPA security certification framework are still under discussion.

Page 14 of 20  Central Bank of Chile September 2019  The Central Bank is developing a new regulatory framework that will allow the real time gross settlement (RTGS) of interbank payments in U.S. dollars, through the incorporation of this currency in the RTGS system managed and operated by the CBC. The financial system’s large-value payments in national currency are currently settled in the RTGS system, where payments are final and irrevocable in accordance with international practices. In contrast, foreign currency payments are settled through correspondent banks, a process that is not exempt from credit, operational, and liquidity risk. The requirements of the new regulatory framework were defined taking into account international experience and risk considerations, after which the draft regulations will be published for public consultation within the next weeks. Dollar settlement at the CBC will improve the competitiveness of local infrastructures and promote the development of the financial market. Moreover, the implementation of this initiative will align local FMIs with international standards, which recommend settlement in RTGS systems due to their contribution to the risk management of participants, the functioning of the economy, and the preservation of financial stability. Page 15 of 20  Central Bank of Chile September 2019  Another initiative that it is currently under development is the incorporation of the Chilean Peso to the Continuous Linked Settlement System (CLS). This financial market infrastructure is currently the international standard for the settlement of cross-currency payments because reduces the risk of settlement, also known as Hersttat Risk, to barely zero.