connectivity. this move towards a common global standard will address issues relating to diverging regulatory and technical standards which have increased friction in making payments and made the cross - border payments landscape more complex. embracing financial innovation to enhance cross - border payments efficiency aside from the global pandemic, the other key disruption to our established view of cross - border payments is financial innovation. there has been growing awareness that the underlying technology for digital assets such as distributed ledger technology ( dlt ) may have the potential to improve payments efficiency, particularly from the cross - border payments perspective. some central banks have made significant strides in exploring the potential of this technology, including testing the use of blockchain and dlt for clearing and settlement of payments and securities. the rapid shift from cash towards other payment platforms, has also intensified calls for central banks to issue central bank digital currency ( cbdc ) to protect the country ’ s monetary sovereignty. many central banks, including bnm, are exploring the merits and feasibility of issuing cbdc. preliminary findings highlighted that this may offer some solution to the challenges associated with cross - border payments ( e. g. synchronised cross - border transaction between different currencies across different platforms, reduced number of intermediaries and improved transparency of payment status ). a bis survey in january 2020 found that more than 80 % of central banks, compared to only 70 % in a survey the year before, are looking into cbdc, suggesting that there is greater openness to issuing a cbdc than a year ago. the survey also shows that emerging market economies report stronger motivations and a higher likelihood that they will issue cbdcs. although many central banks are considering cbdcs, they appear to be proceeding cautiously, with only about 10 % of central banks say they are likely to issue a general purpose cbdc in the short term and 20 % in the medium term. whether it is for dlt, cbdc or other innovations in financial technology, it is important for central banks to continue cross - border cooperation in order to realise successful digital transition. harmonisation of standards and data privacy across jurisdictions ; information - sharing ; and support for cross - border integration through the various international platforms, are some of 2 / 3 bis central bankers'speeches the ways for central banks to contribute to this transition. preserving safety and soundness as we embrace financial innovation, we need to be mindful of the risks of unintended consequences such as cyber threats and spread of illicit finance. these

trend also needs to be complemented with similar evolution in the socio economic aspects of islamic finance such as waqf and zakat. a stronger zakat and waqf system would not only complete the equation for a comprehensive islamic financial system that supports a more equitable distribution of wealth to ensure fairness and equity, it will also become the user of the islamic financial services particularly in the management and investment of the zakat and waqf funds. in addition, access to islamic financial services to micro enterprises would bring such activities into the economic mainstream and improve their level of performance. conclusion as islamic finance advances forward to become an integral component of the international financial system, continuous efforts are needed to further develop the domestic financial system to meet the changing requirements of a highly dynamic and rapidly evolving environment. in our quest to build a viable and sustainable islamic financial system, the aim is to contribute to the channeling of capital flows to productive investments, create wealth and promote economic activities, that conforms to the principles and values of shariah. with this, the islamic financial system will ultimately bring benefit not just among muslims but with the rest of humanity, insyaallah. thank you.