That is shown by the licensing of the first operator of the national payment system by cards, which also plays the role of the local processor, and we hope to have a direct impact on promoting the use of cards as a means of payment. A priority in the near future for the Bank of Albania is to establish regulatory framework and provide for the operation of private payment clearing and settlement systems. This year marked the establishment of the central Albanian Financial Instrument Settlement and Registration (AFISaR) system of government’s securities. The new system provides premises for the development of the securities market, rendering these assesses more liquid and, consequently, promotes their use in the commercial exchanges in the domestic economy. Bank of Albania is aware that the needs for further and more programmed interventions are still high considering the low level of penetration of either financial services or relevant innovations. Banks, various operators and suppliers of services have great potentials for new mechanisms and instruments. In the framework of institutional architecture and understanding the need for coordinating of efforts at national level, in 2014, Bank of Albania approved the regulatory base for the establishment and organisation of the National Committee of Payments, which includes the Ministry of Innovation, Ministry of Economy, Ministry of Internal Affairs and representatives of the banking system. The committee that will be convened soon, will provide considerable contribution to promoting collaboration and interaction, for strengthening security, sustainability and effectiveness of the national payment system in Albania.

In its role as the regulator, the Bank of Albania’s vision is to contribute to the future, aiming to establish a highly adequate environment for boosting financial innovations and modernising the financial structure. Our regulatory regime aims at fostering innovation, being a positive catalyser and not a barrier. We aim at being avant-garde for a modern financial infrastructure. But experience shows that technology always is a step ahead and rapidly spreading. Technology has no limits and we, as regulators, should adopt rules and laws that these technologies be used by the consumers, individuals or businesses. At the same time, we should be aware of the risks that accompany these new technologies. Finding a perfect balance between the promotion of new ideas and the regulatory prudence constitutes one of the major challenges in this regard. BIS central bankers’ speeches  1  Bank of Albania has designed a payments regulatory framework, which paved the way for the development and modernisation. This framework provides all banks or other suppliers of financial services with the possibility to access the payment system in an equal and transparent way, thus contributing to the development of a competitive payment industry, without any asymmetry. Bank of Albania welcomes the contribution of innovation and technology in financial services as a support for achieving its strategic objectives for financial inclusion and reduction of cash use in the economy. These objectives serve crucially to both the transmission of the monetary policy and the safeguarding of financial stability.