alejandro diaz de leon : introductory remarks on regulating big tech remarks by mr alejandro diaz de leon, governor of bank of mexico, at the bank for international settlements conference “ regulating big tech : between financial regulation, anti - trust and data privacy ”, 7 october 2021. * * * i would like to thank the bis for inviting me to participate in this panel on bigtech and data in finance, and discuss what does the entry of big techs in payments mean for competitiveness and financial ecosystem and the challenges it represents for central banks. recent advances in technology and innovation have created the potential for a structural transformation in payment and financial services ( platform payments and platform finance ). the inclusion of networks with a wide customer base in the financial ecosystems, the so - called bigtechs, seeks to link customers with financial services, either provided by financial intermediaries or themselves. this raises key issues for public policy, in terms of competition, consumer protection and financial stability. an open finance ecosystem could have several benefits, better services, lower costs and deeper financial inclusion, but authorities should be careful and avoid potential suboptimal results ( concentration, vertical integration, lack of interoperability, etc. ). an open finance ecosystem without adequate regulation will not deliver the desired public goods. bigtechs providing payment and financial services are clearly part of our financial ecosystem. we must work on the necessary technological and regulatory conditions to avoid regulatory arbitrage. it must be clarified that a level - playing field is not against innovation. instead, it is a response by policymakers to avoid the “ winner takes all equilibrium in networks ” and “ too big to regulate ” problems, as conditions needed to promote competition, sound risk management and public interest. to promote a well - functioning payment systems and a more inclusive and efficient financial system and to make a good use of the opportunities offered by new technologies, we have identified seven public policy anchors to guide this process : 1. same risk / same regulation : o align incentives to achieve maximum social benefits, o addressing market failures and o promoting an environment for competition. level playing field on aml / cft requirements, legal, financial and operational risks. 2. interoperability and neutrality : need to avoid large networks using their condition as a competitive advantage to carry financial transactions exclusively through their networks. 3. no kingmakers : large networks joint - venturing with specific financial institutions could extend the former ’ s market power and concentration to financial markets. 4. ensure business continuity

remarks by alejandro diaz de leon, governor of banco de mexico, at the 13th annual conference by the central reserve bank of peru, the re - inventing bretton woods committee, and the interamerican development bank “ the next global financial cycle in a divergent global economy, panel : central banking in a new era? ” july 23, 2021 introduction • first, let me thank the organizers of today ’ s conference. it is an honor to share this panel with my colleagues. • to address today ’ s panel “ central banking in a new era? ” i will make some remarks on four topics : i ) monetary policy ; ii ) financial stability ; iii ) payment systems, and iv ) climate change. challenges for monetary policy • regarding monetary policy, central banks in emerging economies face a more complex set of trade - offs than their counterparts in advanced economies. • in small, open economies, which supplement domestic savings with external financial resources, it is essential to preserve a sound policy mix to foster an orderly adjustment of the economy to adverse shocks and to attract capital inflows. • in these economies, external and idiosyncratic shocks not only affect the demand side, but also the supply side and financial markets, which tends to increase policy trade - offs. • in advanced economies, in the last decades, several structural factors and demographic trends have induced lower potential gdp growth, lower inflation, and a lower real neutral interest rate. • this has resulted in a sustained trend of low - and below - target inflation for long periods of time. this allows advanced economies ’ central banks to be extremely patient in the wake of higher inflation. • emerging markets are not in the same position. we have less policy space, price formation has not been dominated by chronically low inflation, and inflation expectations have not been persistently below target. we need to be mindful of a more flexible and agile price formation process. • in addition, as we have been recently reminded, emerging market economies continue to be exposed to different types of adverse idiosyncratic factors that limit investment, growth, and hamper development. • furthermore, the complex post - pandemic environment poses significant challenges : 1. the global economy is highly heterogeneous and in uncharted territory. 2. fiscal support, mainly in the us, is currently at unprecedented levels, helping the recovery but adding inflationary pressures. 3. post pandemic price and wage dynamics are highly uncertain. 4. recent changes in