crypto asset players that may not be consistently regulated. new cooperative oversight arrangements need to be carefully considered to ensure that emerging risks and vulnerabilities remain well - managed. with instantaneous cross - border payments becoming more pervasive, cooperation across borders also need to consider issues surrounding capital flow management as well as dispute handling for fraudulent crossborder transactions. as central banks experiment with new digital forms of money such as central bank digital currencies ( cbdc ) and tokenised deposits, the way central banks oversee payments is also poised to change significantly as these instruments become more widely used in the payment ecosystem. indeed, the more imminent prospect of private sector stablecoins is already raising important questions on the adequacy of existing regulatory frameworks and their implications for the monetary system, including the impact on transmission mechanisms for monetary policy. international standard - setting bodies like the bis, cpmi and iosco would have an important role to play in supporting appropriate responses to these challenges by fostering dialogue, considering standards, and facilitating greater information exchange and collaboration between central banks and regulators around the world. developments in malaysia and asean against this backdrop, bnm has established a cross - functional digital currency research hub ( dcrh ) to lead an open and pragmatic approach to innovation by exploring how emerging technologies can futureproof our domestic payment infrastructures. an immediate focus has been an undertaking that is currently in progress to modernise our rtgs system. earlier this year, bnm issued a discussion paper that outlines plans to modernise our large value payment system, rentas. this will include supporting near 24 / 7 operations, wider participant access, enhanced data sharing and analytics capabilities, and more effective liquidity management. at the same time, we are actively pursuing exploratory work on the potential of wholesale cbdc to futureproof rentas and improve cross - border payments – including facilitating local currency settlements for cross - border trade and investment activities to reduce foreign exchange costs and enhance resilience against financial shocks. to this end, bnm is working to develop a wholesale cbdc prototype based on identified use cases to help us understand how cbdc could support new payment solutions that can overcome pain points faced today. concurrently, bnm also continues to be actively involved in projects conceived under the bis innovation hub, along with other central banks both in this region and beyond. the dcrh has also been tasked to study potential use cases for asset tokenisation. this would bring together money and assets on

first, for many central banks, the payment mandate has taken on a much more important strategic focus – perhaps not seen to the same degree in earlier periods. technological advancements offer enormous potential to achieve faster, lower - cost and convenient payments. harnessing this potential has inevitably involved a significant role for central banks to address coordination issues in a way that reduces fragmentation while encouraging competition. it also falls on central banks to ensure that payment systems remain safe and reliable amid new and emerging risks. and central banks have a keen interest in ensuring that technology works to create more inclusive finance for all. for these reasons, central banks have generally been very visible in strategic initiatives to drive the adoption of digital payments, improve cross - border payment arrangements, and modernise financial market infrastructures. in these examples, central banks have assumed a key role in setting the pace and driving change by actively bringing together stakeholders to work in concert. the second notable impact concerns the more significant interdependencies that have emerged across functions within central banks. radical developments in the payment space have created a strong current, forcing different parts of central banks to come together to better understand and untangle payment trends and how they interact with the economy and society. this effect has been pervasive – certainly in our experience – involving those working within areas of supervision, financial markets, financial development, monetary policy, technology, risk management, fraud and financial education as well as financial inclusion. this evolution in how central banks approach their responsibility for payments is driven in part by a desire to encourage competition and innovation in financial services in order to better meet current and future needs of the economy. critically, it also reflects the need to anticipate and manage risks to the central bank's mandates. the pace of change and potentially far - reaching impact of payment innovations requires central banks to carefully consider how such innovations affect the complex balance between resiliency, inclusivity, efficiency and policy efficacy. we need to remain vigilant to new pockets of risk even as we pursue measures that aim to encourage responsible innovation. for example, with many transactions becoming almost real - time, intraday liquidity management becomes more crucial for players. it infrastructure and cyber security have shifted into sharp focus especially since the surface along the payment value chain for threat actors to exploit has expanded significantly. 2 / 5 bis - central bankers'speeches the regulatory perimeter today also poses new challenges. banks now co - exist alongside significant non - bank payment providers that include'big tech'and