digital transformation of the retail payments ecosystem welcome address by ignazio visco governor of the bank of italy at the ecb and banca d ’ italia joint conference, rome 30 november 2017 i am pleased to welcome all the speakers and participants to this conference on the ongoing digital transformations in the retail payments ecosystem. the programme is remarkable : many key issues for central banks and the private sector will be discussed in these two days. let me take this opportunity to thank the organizers at both the bank of italy and the european central bank for putting together such a broad and relevant array of topics. the fast evolution of digital technologies promises to deliver benefits but it also creates new challenges for the payment system and its stakeholders. today ’ s conference is an opportunity to take stock of recent advances, to evaluate possible future landscapes in retail payments and to discuss the challenges and opportunities they pose to central banks and the population at large. i am sure that maintaining a continuous dialogue among central bankers, private sector representatives and academics on the subjects that will be discussed in this conference will contribute to the efficiency and safety of our payment systems. the diffusion of digital technologies is having pervasive effects on our society. today, around eighty per cent of the european population has a smartphone, personal computer or tablet to navigate the internet. we use the internet to perform many fundamental activities that influence our behaviour and productivity, such as communicating and searching for information. the rise of e - commerce is also having substantial, and at times disruptive, effects in many industries. digital innovations, such as big data and artificial intelligence, are used for medical diagnoses, in the transportation sector and to select the news that is reported on social media. the explosive growth of electronic devices controlled through the internet suggests that the “ internet - of - things ” will play an important role in our daily lives. as the youngest, tech - savvy generations approach adulthood, the effects of these phenomena are bound to become even more significant than they are today. the digital transformation of our society has also changed the type of payment instruments we use. indeed, the more we use digital distribution channels in our consumer expenditures, the more we need digital forms of money to pay for these transactions. but there is also a cultural change behind this process. credit and debit cards are increasingly used in brick - and - mortar stores, and in some countries banknotes are no longer the most common means of payment. the highly dynamic landscape of payment systems is ever evolving. while new

competitive local private sector. we welcome this effort to collectively rethink our approach to evolving contexts, particularly through broader analyses of the drivers of social unrest and violent upheavals and a strengthened regional perspective. we commend management for the continued implementation of the g20 capital adequacy framework ( caf ) review, designed and launched under the italian g20 presidency. we note with satisfaction that the caf measures adopted so far are set to boost the ibrd's lending capacity by more than $ 100bn over a decade, a figure higher than what the 2018 general capital increase has provided over the corresponding 10year horizon. the increase of ibrd financing power will allow better response to global challenges and traditional development goals. the g20 caf review has also spurred ifc and miga to put forward equally transformative programs and products. much can still come from further implementation of the caf recommendations. we stand ready to evaluate and help devise additional measures and finetune existing instruments, at the board, with other relevant entities, and in international fora. private capital mobilization remains crucial to meet the needs and aspirations of developing and emerging countries. we welcome additional efforts to mobilize institutional investors and promote local private sector development. we therefore applaud the launch of the private sector investment lab and ifc's development of the 2 / 3 bis - central bankers'speeches warehouse - enabled securitization platform ( wesp ), renewed diagnostics, targeted government dialogue, and business - enabling policy reforms. we encourage progress on the global emerging markets risk database ( gems ) initiative, as part of a larger effort to improve information gathering and knowledge sharing within the larger investment community. the wb should work to maximize domestic resource mobilization, including through the new public finance review ( pfr ). envisaging a clear and effective division of labor, we invite the wb to collaborate closely with other partners, in particular the imf. the ability to put good ideas to good use is just as important as financing. we should therefore focus discussion on promoting innovation, building capacity in client countries, and developing bankable projects. within the wider agenda of the new wb playbook, we consider three workstreams of utmost importance. first, a strengthened one world bank approach. this should better integrate policy advice and public sector financing with private sector development and capital mobilization, thereby feeding into a revamped cascade approach. second, stronger partnerships, which should also lead to more effective country platforms.