From the recall date onwards, the old notes lose their status as legal tender and can then only be exchanged at the SNB or one of our agencies. The future of cash in the digital age I would like to finish by looking to the future. The digital transformation taking place in our economy is also affecting developments in the payments arena. As part of its statutory mandate, the SNB must not only ensure the supply and distribution of cash but also facilitate and secure the operation of cashless payment systems. A well-functioning payment system is critical for our economy. Technological progress is also changing customers’ expectations and needs in terms of cashless payments – for instance as regards speed and user-friendliness. In this area too, the SNB is a participant in innovation. Specifically, we are ensuring that Swiss Interbank Clearing (SIC) – our country’s powerful infrastructure for transacting cashless payments in Swiss francs – continues to work quickly and efficiently and thus remains as attractive as possible. Promoting and ensuring both the supply of cash and the smooth functioning of cashless payments is no contradiction. The various payment methods satisfy the differing needs of our population. Our latest survey on payment methods, published in May 2018, showed that the public’s use of – and affinity for – cash remains high. It also confirmed that the Swiss population like to be given the choice between paying cashless or paying with notes and coins. Banknote circulation in our country has increased steadily in recent years.

Artificial intelligence is already being deployed to replicate human logic and judgment in specific applications. According to the OECD, 9% of jobs are at high risk of being replaced by automation, and a quarter of the workforce requires major re-skilling. Currently, only 42% of the workforce has the necessary skills to thrive in tech-rich landscapes. In Malaysia and like many other countries, technological advancements have reinvented many processes and displaced many functions in bank branches, forcing closure and rationalisation of operations. Automation will replace conventional labour as we know it, and this trend will go unabated. Tweaking our approach to globalisation The IMF has warned that global living standards will continue to fall, unless governments and businesses take measured efforts to put in place long-term solutions. The trends that I have mentioned, while highlighting the larger challenges that confront us, should not reverse our current path of progressing towards expanded but measured globalisation. We must emphasise the benefits of globalisation to counter populist sentiment, while actively assisting those negatively impacted to make the necessary adjustments. It is from this perspective that the 2/5  BIS central bankers' speeches  solution is not to turn our backs on globalisation, closing borders and cut ties, or to withdraw from international trade or financial agreements and commitments. It is from this perspective that research has the potential to advance the current conversation on global solutions. As we re-evaluate our path of policymaking, there must be heightened focus on evidence-based research and greater room for experience-based policymaking.