alejandro diaz de leon : introductory remarks on regulating big tech remarks by mr alejandro diaz de leon, governor of bank of mexico, at the bank for international settlements conference “ regulating big tech : between financial regulation, anti - trust and data privacy ”, 7 october 2021. * * * i would like to thank the bis for inviting me to participate in this panel on bigtech and data in finance, and discuss what does the entry of big techs in payments mean for competitiveness and financial ecosystem and the challenges it represents for central banks. recent advances in technology and innovation have created the potential for a structural transformation in payment and financial services ( platform payments and platform finance ). the inclusion of networks with a wide customer base in the financial ecosystems, the so - called bigtechs, seeks to link customers with financial services, either provided by financial intermediaries or themselves. this raises key issues for public policy, in terms of competition, consumer protection and financial stability. an open finance ecosystem could have several benefits, better services, lower costs and deeper financial inclusion, but authorities should be careful and avoid potential suboptimal results ( concentration, vertical integration, lack of interoperability, etc. ). an open finance ecosystem without adequate regulation will not deliver the desired public goods. bigtechs providing payment and financial services are clearly part of our financial ecosystem. we must work on the necessary technological and regulatory conditions to avoid regulatory arbitrage. it must be clarified that a level - playing field is not against innovation. instead, it is a response by policymakers to avoid the “ winner takes all equilibrium in networks ” and “ too big to regulate ” problems, as conditions needed to promote competition, sound risk management and public interest. to promote a well - functioning payment systems and a more inclusive and efficient financial system and to make a good use of the opportunities offered by new technologies, we have identified seven public policy anchors to guide this process : 1. same risk / same regulation : o align incentives to achieve maximum social benefits, o addressing market failures and o promoting an environment for competition. level playing field on aml / cft requirements, legal, financial and operational risks. 2. interoperability and neutrality : need to avoid large networks using their condition as a competitive advantage to carry financial transactions exclusively through their networks. 3. no kingmakers : large networks joint - venturing with specific financial institutions could extend the former ’ s market power and concentration to financial markets. 4. ensure business continuity

relative to other cities. interstate migration at that time was contributing a full percentage point a year to queensland ’ s population growth. by 2008 this flow had slowed a bit, but international migration had picked up and queensland ’ s population growth increased, peaking at nearly 3 per cent. western australia ’ s population growth was even higher, peaking at almost 3½ per cent. meanwhile, at least up to 2007, people were confident and finance was readily available. brisbane housing prices, which had been a bit over half of the average level of sydney and melbourne prices in 2002, had risen to be almost the same by 2008, which was unusually high. the rate of interstate migration to queensland then slowed further, to be at its lowest in at least a decade. the effects of that on state population growth were compounded by a decline in international migration, something seen in all states. at the same time, finance became more difficult to obtain and lenders and borrowers alike became more risk averse. this happened everywhere, but its effects in queensland seem to have been more pronounced. since then, brisbane housing prices have been declining relative to those in the southern capitals and the construction sector here has found it tough going. if the allocation of super funds ’ equity assets to resources companies is broadly similar to that of the australian share market, then around 10 per cent – or $ 130 billion – of australians ’ superannuation assets are invested in resources companies. and this 10 per cent has been providing a healthy return ; over the past year alone, the average return on resources company stocks has been around 20 per cent. bis central bankers ’ speeches so a complex interaction of forces – the commodity price cycle, the financial cycle, population flows, endogenous responses of housing prices that then feed back to population flows and so on – has been occurring. the ebb and flow of these forces has made for differences in performance, first in one direction, then the other. thirdly, the industry make - up of our economy is continually changing. while this is often a slow process – almost imperceptible in most years – these shifts have been significant over time. there is little doubt that trade - exposed manufacturing firms not linked to the resources sector are facing tough conditions at present. but many people might be surprised to learn that the peak in manufacturing ’ s share of australia ’ s gdp was in the late 1950s – more than five decades ago. its fastest rate of relative decline, so far, was probably in