to create a true pan - european retail payment solution that has the potential to meet the vision of our strategy. the proposed solution would be based on the sepa credit transfer instant ( sct inst ) scheme, which is in our view the correct approach as it is future - oriented. and it could capitalise from day one on existing powerful and sophisticated infrastructures, such as the eurosystem ’ s tips. what is now needed, however, is a strong commitment from the proponents of the new initiative, and a clear roadmap to meet the envisaged objectives, so that we can see tangible actions emerge soon. proponents should also work closely with the european commission to ensure that any project will be open and comply with eu competition rules. this also means that if and when other initiatives emerge, they will of course be considered equally. public initiatives may be useful and needed from time to time to support industry - led solutions. the european commission, for example, could propose legislation obliging payment service providers to adopt instant payments within a certain period if a critical mass has not been reached by, say, the end of 2020. other regulatory changes may be needed in due course. for its part, the eurosystem stands ready to provide additional technical assistance where useful and required. for example, we will analyse how we could support the search for solutions that ensure that sct inst - compliant clearing mechanisms can be fully integrated. current private solutions for the clearing of instant payments still have not addressed interoperability issues in a satisfactory manner. this requires further analysis and action. the ecb will also continue to monitor how new technologies change payment behaviour in the euro area, for example through a reduced demand for cash. we will explore how, and to which extent, central banks would need to adapt their policies and instruments to face challenges to consumer protection and monetary policy transmission that could arise from such changes. for example, a central bank digital currency could ensure that citizens remain able to use central bank money even if cash is eventually no longer used. a digital currency of this sort could take a variety of forms, the benefits and costs of which the ecb and other central banks are currently investigating, being mindful of their broader consequences on financial intermediation. 3 / 4 bis central bankers'speeches but potential central bank initiatives should not discourage or crowd out private market - led solutions for fast and efficient retail payments in the euro area. conclusion let me conclude. global payments markets are undergoing

2012. net export deficit narrowed 23. 9 % during this period, reflecting higher exports and lower imports than a year earlier. foreign trade data reveal that the positive impulse is carried forward in july as well. year - on - year, exports grew 11. 6 % during these months, whereas imports recorded low annual growth rates, namely 1. 1 %. these developments have led to trade deficit narrowing by 5. 2 %, year - on - year. monetary developments point to moderate monetary inflationary pressures on the economy. money supply retained its expansion rates of earlier months, registering 8. 4 % annual growth in july. its performance reflects the low demand of the domestic economy for monetary assets. the performance of financial markets has reflected the improved liquidity conditions, lower risk premiums and inflation situation in the economy. interest rates in the interbank market went down, transmitting the most recent cut of the key rate in july. additionally, yields in the primary market of government securities continued their descent. further easing of monetary conditions is expected to be transmitted also to interest rates in other segments of the financial market, conform to the time lag of monetary policy transmission mechanism. in the improved context of domestic financial markets and in the presence of a sound banking system, the bank of albania expects that its earlier decisions to ease the monetary policy will be eventually transmitted in full to the economy. projections for the economic outlook are in line with the baseline scenario assessed in previous months. economic activity at home is expected to remain low, conditioned by weak consumption and private investments as well as limited space for fiscal stimulus. consequently, inflationary pressures remain low and in check, reflected in the performance of inflation expected to range close to bank of albania ’ s target. * * * at the end of the discussions, the supervisory council decided to keep the key interest rate unchanged at 4. 0 %. bis central bankers ’ speeches