of central bank money between commercial banks'sight deposits on the 1 / 4 bis - central bankers'speeches balance sheet of a central bank. the one - to - one convertibility of commercial bank money into central bank money ensures that these two types of money are used interchangeably. one swiss franc is one swiss franc, irrespective of whether it is issued by the central bank or by a specific commercial bank. the value of commercial bank money is thus anchored by the value of central bank money. this ensures what is known as the'singleness of money '. settlement in central bank money is facilitated by central bank payment systems. in switzerland we use the sic system. last year, sic settled a daily average of around 4 million transactions worth more than chf 220 billion. the use of central bank money in a payment system eliminates credit risk and minimises liquidity risk, thereby contributing to financial stability. in summary, it is essential for a central bank to maintain the role of its money as the anchor of the monetary system, irrespective of future technological innovations. settlement of tokenised assets and the snb's wholesale cbdc pilot one promising technological innovation currently gaining momentum is the tokenisation of financial assets. tokenisation means the digital representation of assets on a distributed ledger, which is a system for recording and sharing data across a computer network. it promises a more secure, efficient and transparent financial market infrastructure for the transfer of assets in real time. switzerland is one of the leading centres in the adoption of tokenisation within the regulated financial system. this year so far, around 2. 5 % of swiss franc bonds have been issued in tokenised format. for the snb, this development raises the question : how can transactions with tokenised assets be settled with central bank money? one possibility we are currently evaluating is to provide financial institutions with swiss franc central bank money in tokenised form. this is often referred to as wholesale central bank digital currency, or wholesale cbdc. to this end, we launched the pilot project helvetia iii in december 2023. the pilot is unique : it makes tokenised central bank money available for settling commercial transactions on the same third - party platform where the tokenised assets are held. this approach aims to fully realise the benefits of tokenisation. in the pilot, selected banks can use swiss franc wholesale cbdc to settle tokenised bond transactions on six digital exchange, or sdx. sdx

##os would be also need to be structured. to facilitate the issuance of these types of instruments, amendments will be required in sbp act as well as setting aside of specific assets of public sector by the government. once these instruments grow, sbp will align the slr for islamic banks at par with the conventional banks ’ slr as the risk associated with islamic banks are in some senses far greater than in conventional banks given their reliance on equity based diversified products. some countries have even considered higher slr for islamic banks as their inherent risks are often times varying in nature and far steeper. promote international standards and best practices in islamic industry. aside from standard application of conventional banking regulations and guidelines, islamic banks will be encouraged to adopt ifsb and aaoifi ( accounting and auditing of islamic financial institutions ) standards with appropriate tailoring to suit domestic requirements. sbp is an active member of these international bodies and has provided input into the technical design and formulation of these standards. promote good corporate governance in islamic banking. islamic banks must exhibit unique fiduciary responsibilities towards investment account holders, ensure shariah conformity and select investments that are shariah compliant ( avoiding products / businesses that are haram ) as well as implement sound internal risk management. as such, they will be required to follow a distinct corporate governance framework in line with the ifsb ’ s guiding principles on corporate governance. launch joint capacity building efforts for islamic finance industry. sbp and the industry will promote capacity building for greater understanding of shariah principles, asset and liability management, and features of product structure. in addition, specialized training will be needed to promote smooth and effective implementation of ifsb and aaoifi standards. e. conclusion with its promising prospects and potential, islamic banks will need to grow at least by 4050 % annually to be able to raise its share from 3. 5 % to about 15 % of the total banking system. given that banking industry as a whole has been growing at a substantively fast pace, the level of effort required for islamic banks would have to be steeper to claim this share. given the success of some countries in achieving this share for islamic banking, it is important that concerted efforts are put in to propel islamic banking system further and deeper in pakistan.