Payments connectivity, especially across borders, is a key ingredient for digital connectivity, financial inclusion, and economic integration. Sustainable finance is a powerful enabler for the net zero transition. High-quality, trusted ESG data is critical for comparable climate-related disclosures, management of environmental risks, and green and transition finance flows. Let me start with payments. The current state of cross-border payments is not fit for the 21st century. It is slow, costly, opaque, and inefficient, relying on an archaic network of correspondent banks. According to the World Bank, the global average cost for sending remittances is 6.4% of the transfer value. 1/8  BIS - Central bankers' speeches  This is particularly painful for the migrant worker who wants to send money home or the small business which wishes to reach overseas markets through ecommerce. Solving the cross-border payments problem will yield gains in both economic efficiency and financial inclusion. This is why the G20 has made it a priority to address existing frictions in global cross border payments – to make payments cheaper, faster, more transparent and more inclusive. There are three possible ways to solve the cross-border payments challenge. one, link up faster payment systems two, build a multi-CBDC common platform three, expand private sector blockchain-based payment networks  First, link up faster payment systems. More than 60 jurisdictions have launched faster payment systems. In general, these systems enable 24/7, real-time transfers directly from a bank account or e-wallet to another bank account or e-wallet, in most cases at zero cost to the user.

Project Nexus aims to address the challenges of speed, cost, access and transparency, in line with the G20 goals set out for enhancing cross border payments. Users can look forward to: Faster speed. A transaction is cleared in 60 seconds, on a 24/7 basis. Lower cost. The aim is to meet the G20's target for cross-border retail payments across any corridor to come down to less than 3% of transfer value. Wider access. The model will enable connectivity for all users of fast payment systems: banks as well as non-bank financial institutions. Greater transparency. A payment sender will have upfront certainty of fees due, and immediate update on transaction status. High security. The central platform leverages on the strong security and risk mitigation protocols built into national faster payment system. The ten members of the Association of Southeast Asian Nations, or ASEAN, have a shared vision of a multilateral network of payment linkages across ASEAN by 2025. MAS believes that Project Nexus can be a key enabler towards realising this vision. ASEAN is well placed to be a first-mover on this multilateral solution. In fact, as this network expands, we hope to see more countries coming onboard as we build connectivity from ASEAN to the rest of the world. Linking faster payment systems solves the cross-border payments problem but not settlements. While cross-border payments can be made instantaneous through such linkages, the settlement process for such payments only happens sequentially. It goes through a series of correspondent banks and depends on the jurisdictions' respective settlement cycles.