calibrates regulation according to the risks that the specific payment activity poses, rather than applying a fixed set of regulations to all payment service providers. while we have expanded the regulatory scope to address emerging risks in payment developments, regulations are also right - sized to the risks posed. 11. first : as individual e - wallets, how do we keep them safe to use? when we look at ewallets, we find that they face very similar risks as digital banking products. firstly, as online services, both are dependent on technology and face cyber risk – so mas expects them to manage these technology and cyber risks well. second, they both hold retail customer monies, so they need to safeguard these monies. the differences however, are that an e - wallet is used for day - to - day payments, and so needs to be very liquid to meet customer demands, and ewallet issuers don ’ t give loans with the float. so it ’ s important to right - size our regulations to their business model, and not to stifle innovation by loading them with bank - like requirements. taking these into account, mas sets out proportionately simple options for e - wallets to safeguard customer monies, for example, holding it as a deposit with a bank. mas may also prescribe further safeguarding measures in liquid and low - risk assets. second : collectively, how do we manage risks that e - wallets pose to the financial system? our role as central banks is to protect the stability of, and confidence in, the financial 12. system. to achieve this, we need to develop regulations that, while addressing key risks, do not obstruct the industry developments. in the case of payments, that key risk is money laundering and terrorist financing ( ml / tf ), and the balance that we have to strike is to allow new e - wallet businesses to start quickly, but also ensure that ml / tf risks are managed before they get too large. in this context, while kyc continues to be a key requirement, we allowed smaller wallets holding funds of no more than $ 1, 000 to carry out simplified kyc requirements. this framework is similar to those used in other markets like hong kong, india, australia and the uk. finally, as a market, how do we ensure that e - payments function smoothly with each other and the financial system? many of us think of smooth functioning as having liquidity 13. providers in capital

commercial bank. after these use cases are developed, a technical proof - of - concept will be conducted, building on the success of jasper and ubin, which are the dlt platforms from the bank of canada and the mas respectively. if successful, this will provide alternatives for cheaper, safer and faster cross border transactions. benoit and my respective committees took a hard look at general purpose cbdc, – and there are many implications - including cost of bank funding, credit provision, and financial 26. stability with the risk of deposits possibly taking flight to central banks during stress periods. these are issues that will have to be addressed should a central bank be deliberating on issuing digital currencies to its wider population. the cpmi and mc study is a reminder that even as we push the boundaries of payments and aim to utilise the latest technologies, central banks need to carefully assess each change and the larger impact to financial stability as well as monetary policy, before jumping on the bandwagon. e. conclusion these are some of the issues that central bankers are grappling with in asia, and how singapore thinks about regulating this innovative area of payments through innovative regulation. with the fast - paced and global nature of changes, cooperation and 27. dialogue between central banks are more crucial than ever before. i am glad to see many familiar faces from various central banks here today. the conference today is a useful forum for us to continue our dialogue, share important perspectives and keep tabs on the latest developments. 28. thank you, and i wish all participants here today a fruitful two days ahead. 1 1 capgemini, world payments report 2017 ( developed / mature apac includes australia, japan, singapore, and south korea. emerging asia includes china, hong kong, india, malaysia, thailand, indonesia, philippines, taiwan, pakistan, sri lanka, and bangladesh. ) 2 4 ey, asean fintech census, 2018 3 2 statista, digital payments highlights, cagr 2018 – 2022, 19 june 2018 4 3 ey and dbs, the rise of fintech in china, 2016 5 5 world bank, global findex database, globalfindex. worldbank. org, 2017 6 6 oliver wyman, winner - takes - all in battle for e - wallet supremacy, 2018 7 7 researchandmarkets. com, global and china mobile payment industry report, 2018 8 8 bis. org, statistics on payment, clearing and settlement systems in the cp