governor ’ s address at the economic policy dialogue, 19 may 2020 esteemed and dear colleagues, let me thank you on behalf of the national bank of serbia for your assessments and recommendations. in your conclusions you highlighted that last year the serbian economy grew by 4. 2 %, while serbian monetary policy was adequate and consistent with the inflation targeting regime. we fully agree with that assessment, given that inflation in serbia has been low – 2 % on average, for seven years in a row. cpi developments contributions to y / y core inflation ( y / y rates, % ) and contributions ( pp ) ( pp ) food core inflation * energy other cpi inflation tolerance band inflation target infl. exp. fin. sector ( bloomberg ) 2. 2 0. 6 1. 4 - 2 - 4 - 1 1 4 7101 4 7101 4 710 1 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 sources : sors and nbs calculation. other restaurants and hotels home appliances pharmaceutical goods and medicines clothes and footwear rents and housing costs travel packages automobiles and transport core inflation 1 4 7101 4 7101 4 710 1 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 sources : sors and nbs calculation. in serbia we recorded a sharp fall in npls since 2015, while our “ banking sector remains well - capitalised and liquid according to several metrics ”, which is a quote from joint conclusions and we fully agree with it. corporate loans have been growing at two - digit rates for several years already, with two - thirds of the growth channelled to micro, small and medium - sized enterprises. investment loans worth around eur 5 billion make 45 % of total lending to the corporate sector. dinarisation has remained one of our priorities. dinar savings have been recording new highs year after year. last year alone, they went up by as much as 30 %. owing to our measures, the spread between interest rates on dinar and fx loans has narrowed dramatically - from 9. 1 to the current 1. 1 pp. esteemed colleagues, a year ago we were in brussels, adopting joint conclusions and discussing the topic of foreign direct investments. but today, our task is much harder, as short - term prospects are quite uncertain. therefore

aligned. if multiple third - party platforms with wholesale cbdc were to exist, this approach could be replicated. de - tokenising wholesale cbdc on one platform and tokenising sight deposits on another would use the same process and would be facilitated by the swiss rtgs system. the role of the snb in this process would be to control the issuance and redemption of wholesale cbdc on the respective platforms. my focus so far has been on project helvetia iii, which explores wholesale cbdc on a third - party platform. but there are other approaches to settling tokenised asset transactions. to understand the respective risks and benefits, we are examining two alternative approaches to wholesale cbdc. in the second part of my remarks, i would like to describe them and offer a preliminary assessment. alternative settlement approaches and preliminary assessment the first alternative approach is linking the tokenised asset platform with the swiss rtgs system. i will refer to it as the rtgs link. the second approach uses private token money which is issued on the tokenised asset platform and which is bankruptcyprotected and fully backed by sight deposits at the snb. i will call this approach backed private token money. 2 / 4 bis - central bankers'speeches the rtgs link employs a synchronised approach to settlement : sight deposits and tokenised assets remain on different infrastructures. to settle a tokenised asset transaction in this setting, the transfer of assets and central bank money is synchronised by messages sent back and forth between the different infrastructures. this corresponds to the current process, where central banks support links between their rtgs systems and other financial market infrastructures in order to facilitate safe settlement. an rtgs link could leverage existing functionality in the swiss rtgs system. central bank money would not leave the current sight deposit accounts, thus preventing fragmentation of central bank money. it would also avoid the governance questions arising from issuing central bank money on a third - party platform. however, an rtgs link would replicate the current process, which builds on synchronisation. this might limit the ability to improve the status quo. backed private token money in turn enables an integrated approach to settlement whereby money and assets would be held on the same platform. it would be accessible to banks that already have access to central bank money and would have risk characteristics similar to those of central bank money. if the token issuer defaults, holders of such private token money have recourse to the central bank money