This includes a stability-oriented monetary and fiscal policy, a clear regulatory policy framework with sound institutions, financial stability, and a secure and efficient payments system. The private financial sector plays a key role in developing innovation and employing new technologies to create innovative solutions for its customers. It knows best what companies and end users need and is able to develop effective solutions for them. The private financial sector and the SNB must work together to take the right steps to ensure that innovation can thrive on a sound basis. This requires a shared vision for the Swiss financial centre – a Swiss Payments Vision, as already set out at one of our Money Market Events two years ago. This vision conceives the future of cashless payments in Switzerland as an efficient, reliable and secure ecosystem. In addition, this ecosystem must be fast and  Page 2/11  interoperable in terms of new payment solutions, new technologies, and across national borders. Before we continue looking into the future, let me focus on three principles that are fundamental to confidence in the current payment system, and which will serve as keystones for the further development of Swiss payments. Foundations of confidence in the current payment system The first principle is the close interrelationship between private money and central bank money (cf. slide 1). This interrelationship allows for an efficient division of labour between commercial banks and the central bank, and manifests itself in the two-tier financial system.

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  ?