10 s  SIC system / SNB Regulated institutions 6  30.3.2023  End users  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Distributed ledger technology (DLT) has potential to make financial market infrastructure more efficient  DLT  DLT DLT  SIC system / SNB Regulated institutions 7  30.3.2023  End users  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Token transactions require a stable-value, generally accepted means of payment ...  Issuer  Private  Form of money  Book money Account balances at commercial banks  User  8  30.3.2023  Central bank Token money Private token money  End users  Retail CBDC  Book money Wholesale CBDC  Account balances at central bank Commercial banks  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  ... and a secure and efficient settlement model  Issuer  Private  Form of money  Book money Account balances at commercial banks  User  30.3.2023  Token money Private token money  Retail CBDC  Book money Wholesale CBDC  End users  Settlement model  9  Central bank  Synchronised (token versus book money)  Integrated (token versus token money)  Account balances at central bank Commercial banks  Synchronised (token versus book money)  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  SNB is examining three models for secure and efficient token settlement  Issuer  Private  Form of money  Central bank  Book money Account balances at commercial banks  User  Token money Private token money  Synchronised (token versus book money)  Account balances at central bank Commercial banks  Integrated (token versus token money)  Model 3: Backed private token money for commercial banks 30.3.2023  Wholesale CBDC  End users  Settlement model  10  Retail CBDC  Book money  Synchronised (token versus book money)  Model 2: Wholesale CBDC  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Model 1: RTGS link  RTGS link (model 1): expanding existing RTGS functionalities to support token settlement  DLT SNB / SIC system  11  30.3.2023  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Wholesale CBDC (model 2): testing wholesale CBDC in a pilot project  W SNB  DLT  12  30.3.2023  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Backed private token money (model 3): examining options to increase value stability and acceptance of private token money  P DLT SNB  13  30.3.2023  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Three scenarios for future payments landscape Hybrid  DLT remains a niche technology  DLT as standard  ?

Enlarged participation in the SSM is a great opportunity for setting a level playing field in supervisory practices across the EU. At the same time, a series of conceptual questions need to be addressed. For one, it is hard to imagine that countries not participating in the European Stability Mechanism (ESM) might act as a financial safety net for troubled but solvent banks, in the event that a privately financed resolution fund is not yet adequately funded. The next steps The establishment of the SSM represents a great opportunity for financial integration in Europe. Let me now turn to the next steps in the establishment of the SSM. First, the swift adoption of the SSM Regulation is essential. Definite plans are crucial in order to uphold the current momentum of the stabilisation of the euro. The general expectation is  4  BIS central bankers’ speeches  that the SSM will be established early this year, with an effective operational start 12 months later. Second, the design of a supervisory model, including the allocation of tasks between centre and periphery is critical for the success of the SSM. In this regard, work is already under way by the ECB in cooperation with national competent authorities – subject to the final legal wording. Third, the SSM will need to carry out a comprehensive review of the banks that fall under the direct supervision of the ECB.