In this spirit, once we have finished our presentation, we will be hearing the views of a panel of experts representing fintech, banking, infrastructure provision and the SNB. To run efficiently, an economy needs functioning payment systems Payment systems play an important part in enabling economies to function smoothly. Allow me to illustrate this point with a brief anecdote taken from a book entitled ‘Across Africa’ by British explorer Verney Lovett Cameron. Cameron crossed equatorial Africa in 1875, and was the first European to do so. At one stage on his travels, he needed some boats. He managed to  Page 2/9  find a boat owner, but the owner demanded to be paid in ivory, which Cameron did not have. However, word reached him that there was a person in the vicinity who sold ivory. There was just one hitch: this person would only accept cotton cloth as payment, which Cameron did not have either. Eventually, Cameron came across somebody who owned cotton cloth that he was happy to part with in exchange for wire. Mercifully, Cameron had brought some wire with him. So he gave this man the required quantity of wire, took the cotton cloth, used this to pay for the ivory, and – finally – bought the boats in exchange for said ivory. 1 This story brings home just how high the transaction costs of an exchange can be. If Cameron had not needed the boats so urgently, the transaction would presumably never have come to pass.

Page 9/9  The evolution of payment systems in the digital age: a central bank perspective  Andréa M. Maechler, Member of the Governing Board Thomas Moser, Alternate Member of the Governing Board Zurich, 28 March 2019  Innovations in payment systems: between efficiency and security Promissory notes, cheques & banknotes  Gold & silver  Electronic bank money (net settlement)  Cost & efficiency  Security & confidence Coins 1  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Central bank money  Real-time gross settlement  Source: SNB  RTGS  Digitalisation is changing the payments ecosystem Client interface  DLT  Business models  New stakeholders  Technical possibilities Payments infrastructure  Regulation Source: SNB  Cyber risks  Unbundling of value chains  2  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Four challenges of the digital age  Client interface Focus on client contact and client data  Value chain  Source: SNB  Development of core infrastructure  3  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Two models for integrating new stakeholders into the payments ecosystem Model 2: Direct access  Model 1: Open access  Client  Client  Fintech  Fintech  Bank  Source: SNB  RTGS  4  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Four challenges of the digital age  Client interface Focus on client contact and client data  Value chain Development of core infrastructure  Zukunftsfähigkeit DLT des Zahlungssystem  Interoperability with DLT  Zukunftsfähigkeit des Cyber risks Zahlungssystem  Security of data communication  Source: SNB  5  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Thank you for your attention  © Swiss National Bank