border payments ’, stage 1 report to the g20 ( technical background report ). natural events may cause breakdowns in single nodes of the payment chain and have an impact on international trades and funds transfers. without electricity, it is not possible to use electronic payment tools, such as credit and debit cards, or mobile services, or wire transfers, and electronic cross - border payments cannot be replaced by cash. the exposure of international payments to climate risk can be mitigated by the actions envisaged in the g20 roadmap, if the payment system community manages to shorten transaction chains, ease interlinking among infrastructures, increase execution speeds and extend operating hours. in terms of the environmental footprint of payments, the impact of a single payment may be negligible, but it has to be multiplied by the sheer size of the number of transactions that are being made globally on any given day. studies on the environmental sustainability of payment tools and systems are still in their infancy but, interestingly, there is evidence that payments architectures may differ considerably in their energy intensity. recent research carried out at the bank of italy shows that the carbon footprint per transaction in 2019 for tips ( target instant payment settlement ), the eurosystem ’ s platform for the continuous settlement of instant payments, was a tiny fraction of the amount of co2 emitted by other distributed - ledger - based networks during 2018. 4 the reason is that a centralized system tends to absorb less energy than a decentralized one, in which a lot of such energy is spent on generating trust and consensus among network participants. 5 in this regard, i also think it was wise of the g20 to decide that four out of the five focus areas of the g20 roadmap aim to enhance the existing payments ecosystem. over the short term, leveraging on existing systems makes it easier for payment services providers to ensure continuity for their business plans, while allowing them to contribute to addressing the challenges identified by the roadmap. this is my second point : an appropriate design of payment systems is good for the planet. my third and final point is that enhancing cross - border payments is a pathway to prosperity, as it clearly raises the potential for the growth of our economies and for job creation. easier and less costly access to international funds transfers improves the participation of consumers in the markets for goods and services and the integration of smes into global value chains and e - commerce platforms. it also facilitates the management of liquidity and

improved training schemes and sufficient flexibility in labour contracts are required in order to avoid an increase in structural unemployment. at the same time, existing competitiveness problems, as well as domestic and external imbalances, need to be urgently addressed by the countries concerned. to that end, wage - bargaining institutions that allow wages to adjust appropriately to losses in competitiveness and the unemployment situation are indispensable. likewise, measures that increase price flexibility and non - price competitiveness are essential. finally, an appropriate restructuring of the banking sector should play an important role. sound balance sheets, effective risk management and transparent, robust business models are key to strengthening banks ’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth and financial stability. we are now at your disposal for questions.