, is what type of architecture for cross - border payments platforms could complement or partially replace the correspondent banking network. one option is to make ‘ local ’ systems interconnected so that participants can clear and settle payments across systems ( in one or more currencies ) without participating in each of them. another option is to build up cross - border and / or multicurrency payment platforms allowing each participant to clear and settle payments across jurisdictions and / or currencies with their counterparties. our own thinking is that, while we are debating, we should bear in mind the need to achieve results quickly. that is why we are investigating how far we can go using the currently available infrastructure. an example of a payment system that can be used in various ways for providing quick and safe cross - currency solutions for instant payments is tips. from may 2022, following an agreement between the riksbank and the eurosystem, swedish banks will be able to settle their instant payments in krona in real time in tips. moreover, investigations are currently underway to explore the common instant payment infrastructure in order to provide a cross - currency solution for instant payment. a further step, currently at the ‘ proof of concept ’ stage, could be a direct interconnection between two systems for processing instant payments, namely tips and the buna platform. this would be an example of cross - currency, cross - continent payment systems integration, a path that could in the future become a sort of new frontier for central banks and private systems operators. cooperation is key for countering the consequences of the pandemic at a lower cost. luckily, it seems that multilateralism is regaining vigour. this is essential as polarization, distrust and inequalities are still pervasive in our societies. payments across jurisdictions are the bread and butter of future growth and prosperity, as they are a fundamental condition for the international mobility of goods and services, capital, and people. let us join forces to enhance them to the best of our ability. designed by the printing and publishing division of the bank of italy

to the burden that they have to bear. access to payment services is especially difficult for disadvantaged people, for the unbanked and for those poorly literate in it services ( i. e. who do not make use of more advanced it services ). the pandemic crisis has only made things worse. according to the world bank, in 2020, the crisis may have pushed more than 100 million people back to poverty ; poverty rates have increased for the first time in the last 25 years, back to levels last seen in 2017. 1 what is worse, it is jeopardizing future prospects for poverty reduction by adversely affecting longer - term productivity growth. for migrant workers, a vital financial service is the possibility to send remittances to their families in the home country. for low - and middle - income countries, remittance flows are a crucial source of external financing, greater than official development assistance and more stable than private capital flows. 2 between 2010 and 2019, remittance flows each year grew on average by more than 5 per cent, reaching $ 717 billion, of which $ 548 billion were to low - and middle - income countries. the cost of sending remittances has declined over the last 10 years, but it still stands at about 7 per cent on average : this is well above the g20 commitment in 2011 to reduce the cost to 5 per cent and the un sustainable development goal target of 3 per cent by 2030. 3 for smes, the challenges for cross - border payments are no less daunting. transaction costs are proportionally higher for smaller payments. opacity over execution times, processing chains and dispute resolution is another major concern. the riskiness of cross - border payments for small companies is magnified by the inadequacy, or even lack, of their liquidity management or of foreign ‑ exchange hedging and trade finance services. this is my first point : enhancing cross - border payments is vital for people. second : in our efforts to redesign the global payments ecosystem, we have to be conscious of its link with the environment, which goes in both directions. extreme world bank ( 2021 ), ‘ global economic prospects ’, january 2021, world bank group. see world bank ’ s data on remittances, available at https : / / www. knomad. org / data / remittances. see fsb, financial stability board ( 2020 ), ‘ enhancing cross -