total transaction, significantly exceeding the global sustainable development goal target of 3 percent. by meeting this target, the economies could save approximately half a billion euros according to world bank calculations. " 5 furthermore, sepa membership will accelerate the digital transformation of our financial sector. by reducing reliance on cash transactions and promoting digital payment methods, it will support the development of a more modern, secure, resilient and inclusive financial ecosystem. recognizing the benefits of joining sepa, countries in the region have invested tremendous amount of time and resources, while being extensively supported by all stakeholders within the western balkans payments modernization project, especially the world bank. these efforts brought us all either already into sepa, or very close to a positive decision on joining it. related to this, let me elaborate more on our position. we submitted our application for sepa membership on 10th of july last year. this historic step was the culmination of years of dedicated work, legislative overhaul, inter - institutional collaboration, and support from international and european organizations. completion of the formal assessment of our application and our readiness to join sepa by the european payments council is expected soon. this will confirm our compliance with 2 / 4 bis - central bankers'speeches the european legal and regulatory requirements in critical areas, including payment services, anti - money laundering measures, free movement of capital, and data protection. these foundational elements ensure that our country is well prepared to meet sepa's technical and legal requirements. having said that, an effective accession will be possible only if domestic payment service providers prepare their systems to meet sepa's technical and operational requirements. therefore, while the benefits of sepa accession are clear, we must also acknowledge the challenges that lie ahead. compliance with sepa's regulatory and operational requirements demands investment in infrastructure, staff training, and system upgrades. the banking sector is expected to work diligently to ensure full readiness for integration with sepa payment systems by october 2025, determined as sepa first possible entrance date for payment service providers from the western balkan countries being sepa members. of course, the successful implementation of sepa adherence will require close cooperation between regulators, financial institutions, and all other relevant stakeholders. the national bank is committed to facilitating this transition. we will continue to provide guidance, technical support, and regulatory oversight to ensure a smooth and efficient integration process. additionally, we will work closely with the international partners that are genuinely committed to address any challenges. the strong commitment and support has recently

for chile • since the beginning of the process, the cbc has publicly stated on several occasions the benefits of cls and its intention to incorporate the peso to the system. • cls mitigates the settlement risk, through a multicurrency payment versus payment ( pvp ) system with legal certainty, meaning the payments are final and irrevocable. page 1 of 4 central bank of chile july 2020 • moreover, cls improves the liquidity management of the financial institutions, particularly the banks that settle directly into the system, using an efficient multilateral net mechanism. • additionally, due to the high standards of currency eligibility and the efficiency of the operative process of settlement, when a currency is part of cls it gives a strong signal of financial development. at the same time, important international players that only traded if the payment is performed through cls can incorporate the peso into their portfolios, thus increasing market competition. • finally, the cls settlement of the peso will improve the transparency of the currency markets ’ transactions, incorporating over - the - counter transactions into an infrastructure, according to the international recommendations and principles. iv. private sector involvement in the cls system • an important part of the risk reduction and liquidity saving benefits is faced by the financial institutions participating in the system and, therefore, passing through to the rest of the financial markets, and ultimately to the users of the financial products, currency derivatives, and foreign exchange ( fx ) transactions. • moreover, as a financial market infrastructure, cls interacts with other financial institutions, particularly with banks. at cls, banks play different roles, such as settlement member, correspondent or nostro service provider, and liquidity provider. • the timely involvement of banks in the process is essential, considering the start of the implementation phase by the end of this year. in other words, at this stage of the peso incorporation process to cls, it is imperative to define the participation of local banking entities, as a settlement members or nostro services providers. • the current projection is that the peso will go live before the end of the second quarter of 2022. therefore, and given the necessary actions, investments, and transformations to connect to the system, the banks must join during this budget period to carry out the implementation process during next year. v. central bank actions to incorporate the peso • the cbc must also perform significant actions, investments, and modifications of its current operation to integrate the