would need to be recorded in our ledgers. in 2021 we introduced the option of an ‘ omnibus account ’ [ 20 ] to facilitate the private sector development of such networks and there are private sector proposals in progress to introduce them [ 21 ]. another possibility would be for a tokenised ledger, including a distributed ledger, to be securely and instantaneously synchronised with our central real - time gross settlement system ( rtgs ). that is not possible today in our current rtgs. but we are now well advanced in the implementation of the next generation rtgs, which is scheduled to go live next year. this system will have much greater functionality including the potential for such synchronisation which we are now actively exploring with the london centre of the bis innovation hub. at present, given where we are on in the uk on the imminent implementation of a vastly more capable rtgs system these options look to provide a faster route to settlement of tokenised transactions in central bank money and are working with industry on how to best exploit the possibilities of the rtgs system [ 22 ]. but we will continue to remain closely engaged with all the options. as with retail payments, it is difficult to forecast now what will prove the more successful approaches. it is most likely that, as is not uncommon with technological development, a range of approaches will eventually be implemented and will co - exist. we have a variety of payment systems, both wholesale and retail, of different vintages operating in the uk today. i would guess that in the future, as new technologies take hold we will see both more innovation and more variety. changes in how we pay for things and what type of money we use is an exciting area of possibility for the fintech world. it is also a fundamental issue for the bank of england – as a regulator, as the provider of the central high value payment rails and the issuer of the highest quality, public money in the uk. we aim to be forward looking, developing both in developing the regulatory frameworks and in developing public systems and public money necessary so that safe innovation can flourish to the benefit of all. thank you. i would like to thank the following for their input to and helpful comments on these remarks : jyoti shah, louise eggett, laure fauchet, morgane fouche, adrian hitchins, jeremy leake, rajan patel, rachita syal and cormac sullivan for their assistance preparing these remarks. i

technology to widen technical capacities. these measures would essentially reduce operational costs and improve the nation's competitiveness. in this more uncertain environment a stable exchange rate is a major competitive advantage. for an open trade - dependent economy, stability in the exchange rates accords significant advantage in enhancing trade and investment opportunities. by eliminating wide swings in the exchange rates, the pegged exchange rate regime has provided a stable environment for businesses to plan their investments and to undertake their operations. at the same time, stability of the exchange rate also provides an environment that facilitates continuous structural reform to improve malaysia's competitive position. it is through long - term structural adjustments rather than frequent adjustments in the exchange rate that a country can build a strong business foundation, improve efficiency and create the enabling environment that encourage competition and innovation. as a small open economy, malaysia does not have influence over the external factors that affect the economy. however, by working on strengthening domestic economic fundamentals, malaysia will be in a stronger position to manage and mitigate the impact of the volatility in the external sector. three elements are important in ensuring that an exchange rate regime continues to operate effectively. first, it needs to be well supported by the domestic fundamentals. second, there must be flexibility in domestic markets to enable the economy to adjust and absorb the impact from external volatility. third, increased competitiveness is achieved through efficiency and productivity gains rather than relying on currency depreciation. in respect to the conditions prevailing in malaysia, malaysia's strong economic fundamentals, with low rate of inflation, strong external balance, low level of foreign debt, strong reserves levels and strengthened banking sector have provided strong support for the pegged exchange rate regime. malaysia also has sufficient flexibility to undertake adjustments on all sectors of the economy to remain competitive. the diversified economic structure, the enhanced mobility of capital and labour has also provided malaysia with increased resilience to weather external shocks. malaysia also had the flexibility of policy to respond to the circumstances. in all cases, when an exchange rate regime has failed, it was not due to the regime itself, but due to the weaknesses in the economy and the financial system. having undergone significant transformation and emerging with a much strengthened set of fundamentals, the malaysian and regional economies are better able to absorb the volatility in the exchange rates. countries are also more cognizant of the costs of currency depreciation, particularly on confidence. as an example, comparing the response of regional currencies