' speeches range of entities, including service users, to carry out the programming of such functions other than core payment functions themselves. this point warrants attention. simplification of payment arrangements through creation and discharge of financial liabilities the second area of focus is efforts to proceed with the simplification of payment arrangements, which have involved the creation and discharge of financial liabilities. for example, many of the fast payment systems introduced overseas in recent years feature real - time gross settlement between banks. this is a byproduct of technological advancement allowing for the elimination of the process involving the calculation of net positions, and further, the replacement of obligations between banks, resulting in the simplification of arrangements for the creation and discharge of liabilities. if we take a step back and think, we realize that quite a few of the existing arrangements have been shaped amid technical constraints in the past. one such case involves correspondent banking arrangements for cross - border payments, in which funds were transferred from the payer to the payee through multiple entities, creating and discharging liabilities in the process. attempts to utilize stablecoins issued by the private sector and wholesale central bank digital currency ( cbdc ) for interbank settlement in cross - border payments can be considered to have stemmed from the idea that simplifying the existing banking arrangements would significantly enhance efficiency. emergence of novel domains of economic activities the third area warranting attention is the emergence of novel domains of economic activities. given that payments discharge any financial obligations resulting from economic activities, it goes without saying that economic activity and payments are closely related to each other. with various economic activities taking place online, online payments will become even more prevalent. recently, the terms web3 and web 3. 0 have become familiar to the ear. while the implications of these notions may differ from person to person, the web3 foundation founded by gavin wood, who coined the term web 3. 0 - defines it as " a decentralized and fair internet where users control their own data, identity and destiny. " how such ideas will evolve in reality and how economic activity will be shaped under those circumstances have yet to be seen. in considering the evolution of payments, it is necessary to also bear in mind how novel domains of economic activities will emerge alongside this evolution. the roles of central bank money the evolution of payments that i have just mentioned carries the potential to bring about enhanced user convenience, new business opportunities, and ultimately, economic growth. even amid such notable evolution

haruhiko kuroda : evolution of payments - payment systems for " neoteric individuals " remarks by mr haruhiko kuroda, governor of the bank of japan, at the fintech summit fin / sum 2023, tokyo, 28 march 2023. * * * introduction i am delighted to be given this opportunity to speak to you at the fin / sum 2023. the main theme of this year's fin / sum is " fintech, the era of'neoteric individual. " while the term " neoteric " is open to interpretation, i will be speaking today within the context of " moving forward " or " evolution. " in a world where information proliferates owing to widespread access to the internet and smartphones, the diverse decisions and actions of consumers - neoteric individuals - are based on the vast array of readily available information. consequently, diversification of user needs related to financial services has increased rapidly ; continuing to merely provide uniform services is no longer sufficient for meeting the various user needs. under these circumstances, financial services are undergoing continuous progress and innovation as they capture cutting - edge technologies and business ideas. the field of payments, an example of financial services, is no exception. my first opportunity to speak at the fin / sum was in september 2019. even if we focused exclusively on the period since, efforts by the private sector toward realizing novel payment services have proven to be remarkable. unbundling of services and functions of the notable developments in payment services, some have drawn my attention in particular, the first of which is progress being made in the unbundling of services that have been provided as tightly coupled thus far. to give an example, with fintech businesses utilizing payment functions provided by banks through an open application programming interface ( open api ), moves to innovate customer services as well as develop a convenient and comfortable user experience are growing increasingly common. shifting our focus to overseas, various stablecoins circulated on permissionless blockchains are emerging. this can be considered an unbundling of two payment functions : one for issuing liabilities, or put differently, settlement assets, and the other for recording interest in settlement assets. this unbundling also applies to " programmability, " a popular term these days. while additional functions such as conditional payments have thus far been provided by the entity in charge of the payment functions, the unbundling of functions allows for a wide 1 / 3 bis - central bankers