alejandro diaz de leon : pushing the frontiers of payments towards faster, cheaper, more transparent and more inclusive cross - border payments closing remarks by mr alejandro diaz de leon, governor of bank of mexico and co - chair of the fsb cross - border payments coordination group, at the committee on payments and market infrastructures conference “ pushing the frontiers of payments : towards faster, cheaper, more transparent and more inclusive cross - border payments ”, 19 march 2021. * * * i would like to thank the committee on payments and market infrastructures ( cpmi ) for inviting me to participate in this conference on a very important initiative aimed at addressing the existing challenges of cross - border payments. recent advances in technology and innovation have created the potential for new payment infrastructures and arrangements that could be applied to cross - border payments. they have challenged the cross - border payments system as we already know it. new technologies have raised the question on how this system can be improved to facilitate fast, low cost and scalable payments for a broad range of users, thereby potentially combining greater efficiency and wider access and inclusion. however, as highlighted during today ’ s sessions, the use of new technologies in cross - border payments involves challenges and risks. these can be identified first from an operational and technological perspective, such as the interoperability of systems and linkages to existing systems. second, there are issues related to legal enforceability and jurisdictional conflict as well as to regulatory measures, to ensure compliance with anti - money laundering and with combating the financing of terrorism and potential financial stability risks. in this regard, the emergence of proposals involving central bank digital currencies ( cbdcs ) have led to a stimulating debate on their implementation. the main question is not whether to adopt them or not, but rather to identify the most convenient solution for each jurisdiction based on its needs and considering consumer protection, monetary policy and the most suitable technological architecture. efficient cross - border payments support economic growth, international trade, global development, and financial inclusion. given the cross - border nature of these issues, i want to highlight that coordinated international actions are key to address them. also, close collaboration with the private sector is required. from that perspective, the roadmap endorsed by the g20 has the right elements to make a real difference in addressing the existing challenges of cross - border payments. it provides a highlevel plan, which sets ambitious but achievable goals. it is designed to provide flexibility to accommodate different starting points

a crucial objective. 3. no kingmakers large networks joint - venturing with specific financial institutions could extend the former ’ s market power and concentration to financial markets. 4. business continuity with systemic foreign providers the failure of a fintech or bigtech firm with systemic financial services operations, or the interruption in the service it provides, could have substantial spill - overs for both the domestic economy it serves and other economies in the region. the source of such risks – particularly those related to legal or operational issues – could also originate in a jurisdiction different from that affected by said issues. 5. jurisdictional gaps bigtech firms operating across multiple jurisdictions could increase the risk of gaps in supervisory oversight. in order to ensure effective monitoring of bigtech financial services activities, efficient cooperation between regulators across jurisdictions is extremely important. in order for regulators to ensure that new risks are regulated equally, new frameworks and standards need to be developed. 6. client protection given that risks concerning consumer protection may be larger in the case of bigtech firms ’ activities, the use of financial data must be regulated to avoid its misuse and also because once bigtech firms have access to the whole set of data it will be difficult to constrain its use. it is just as relevant to promote robust and transparent data governance frameworks to provide clarity regarding the use of consumer data, thus enhancing consumer confidence. 7. cybersecurity since the number and severity of cybersecurity incidents that affect the operation of all types of companies have been increasing, information technology security is a priority issue for all industries, and for the entire financial system. setting minimum standards is crucial to avoid contagion and risks to the systems. thus, cyber and operational security should be addressed through three layers : i ) the owner ( s ) of the infrastructure ( s ) ; ii ) the participants ( setting minimum requirements to them ) ; and, iii ) the users. even when all layers require the implementation of measures aimed at making cybersecurity robust, the users ’ layer could be the weakest link of the chain and addressing their inherent problems would require creative solutions. i want to conclude emphasizing that the cornerstone for a healthy payment ecosystem is a safe and robust infrastructure for low, medium and large value payments, with 24 / 7 services, 3 / 4 bis central bankers'speeches extremely high levels of availability and capable of acting as a hub for the innovation of payment services to final users. developing this public infrastructure should be at the top of the