own borders. • cash's special features, especially confidentiality, universal acceptance and accessibility, are not currently available in the digital space. with payments increasingly moving to digital environments, we must therefore address the question of how to ensure that these essential characteristics are safeguarded in the future. page 3 / 8 • furthermore, expanding the use of digital solutions has steadily upped our reliance over noneuropean entities ( particularly from the united states ), which already leverage on significant network effects, thanks notably to their ability to harness extensive datasets and customer bases, and which control a number of widely used proprietary standards ( visa, mastercard ). beyond the matter of operational resilience, this situation raises competition, strategic autonomy and data protection concerns. • lastly, thanks to the impetus from european regulations, the rise of online payments has been accompanied by the introduction of strong customer authentication. strong authentication involves the use of two or more of the following three factors : possession ( something only the payer possesses ), knowledge ( something only the payer knows, such as a password ), or a biometric factor ( such as a fingerprint ). while the widespread implementation of strong authentication ensures a higher level of technological security across the entire payment chain, this makes it consumers awareness and vigilance all the more important, for they are increasingly targeted by fraudsters. in 2022, a rapid increase in fraud techniques involving scams and social engineering was observed, including spoofing techniques where fraudsters impersonate bank officers to put victims off their guard. the french observatory for the security of payment means ( osmp ) noted that while the share of fraudulent payments with strong customer authentication remained contained in 2021, it reached a significant level in 2022, climbing to 30 % of the total value of fraudulent online card payments. • all of these aspects relating to the digitalisation of payments raise regulatory and supervisory challenges. over time, the payment value chain has grown more fragmented due to the proliferation of stakeholders, some highly specialised, operating in different segments and offering increasingly diversified solutions which sometimes a limited interoperability. in this environment, it is becoming harder for regulators to develop a holistic overview of the sector's risks and interdependencies. moreover, some unregulated – or less regulated – participants, such as mobile phone manufacturers and telecom companies, now play a critical role in the security of means of payment. how are regulators tackling these challenges? page 4 / 8

and the real conditions under which transactions take place. 2. meanwhile due attention should be paid to an adequate calibration of the framework. the development of multiple concomitant regulations ( capital, liquidity etc … ) calls for a perfect coordination. we cannot pile up these different approaches without assessing their impact and the costs incurred for the market and the public. this is a particular concern when considering the collateral requirements that stem from the different regulations. 3. last but not least, we need to promote a consistent framework. consistency has several sides • consistency across jurisdictions : it is vital as most players on otc derivatives are global actors : we need to minimize the incentives for regulatory arbitrage ; • consistency with respect to the localization of market infrastructures, which should remain coherent with respect to the currencies traded : infrastructures should be under the direct reach of the central bank concerned by the systemic risk attached to the clearing of large positions in a given currency ; • consistency regarding the different types of players / counterparties : in order to prevent the move from regulated spheres to unregulated ones, we need to set up a framework where financial innovation, a key factor for economic growth, continue to develop in regulated spheres, and benefit from appropriate risk regulation. bis central bankers ’ speeches i will not dwell further on these topical issues, which are about to give rise to a fascinating discussion. it is my hope that we can collectively contribute to enlighten the policy debate. let me now give the floor to our panelists. bis central bankers ’ speeches