provide another great opportunity for us to redouble our efforts. for example, studies on payment innovations such as project mbridge, project dunbar, and project nexus led by hong kong, singapore, and other asian economies together with the bis innovation hub are proceeding briskly. in addition, asia is no longer in a position of catching up in blockchain technologies but is now at the forefront of research in this area. such innovations in cross - border payments could serve as a catalyst in promoting regional capital markets. more specifically, local currency bonds can be settled on a delivery versus payment ( dvp ) basis using local currency cbdcs, lowering cross - border and cross - currency transaction costs and risks, not to mention the third time zone problem. 9 and using distributed ledger technology ( dlt ) may make it possible to settle cross - border securities transactions without relying on global custodian banks and securities depositories. such changes will allow us to overcome many legal and political issues as well as the insufficient market infrastructure which have been major obstacles to regional capital market development. for several decades, asia has been the engine of global growth in real activity, but not in financial markets. if we make good use of technological innovation, it will help to develop our regional financial markets much faster and enable asia to remain the growth engine of the global economy going forward. conclusion today, i talked about the multi - layered safety nets to guard against financial crisis in the region. but, before concluding my remarks, let me emphasize that while these safety nets are an insurance mechanism to protect us, the best way to prevent such a crisis is to secure sound macroeconomic management with strong financial supervision and regulation. and although i wish i could have given better grades to the cmim, amro and the abmi today, please take my assessment as encouragement. i hope that we can work harder together to make asia regional safety nets more effective and stronger in the future. my best wishes for very productive roundtable today. thank you. for the third time zone problem, see park and rhee ( 2006 ). references arslanalp, serkan, chima simpson - bell, and barry j. eichengreen. 2022. " the stealth erosion of dollar dominance : active diversifiers and the rise of nontraditional reserve currencies. " imf working papers 2022 / 058. asian development bank. 2017. " the asian bond markets initiative : policy maker achievements and challenges. " hyun

and, as such, the incentive to see hyun and paradise ( 2019, 2020 ) for discussions of the benefits from an institutionalized fund. honor previous pledge will be reduced. therefore, to make the cmim effective, it is critical to transform it into a fund with paid - in capital and develop a proper institutional design so that its paid - in capital can be always regarded as a part of fx reserves. prolonging the maturity second, we need to extend the maturity of the cmim programs. although the cmim ’ s original purpose is to respond to a liquidity problem, in many cases, illiquidity can easily develop into solvency problems, which require more time to resolve. also, the short period of financing assurances reduces the incentive for member countries to turn to the cmim. recently, the cmim has adjusted the maturity of their financial assurances and improved compatibility with imf programs. however, given that the structure of the facility still requires annual rollovers, the borrower ’ s financing remains uncertain. one of the factors that made the esm successful is that its loan maturities have very long terms of 10 years or longer, reducing the borrowing country ’ s burden and uncertainty about the repayment schedule. admittedly, it would be difficult for the cmim to use very long - term maturities like the esm, considering most asian currencies are not internationalized and convertible unlike the euro, but we could at least consider adjusting the repayment period to those of the imf ’ s stand - by arrangement or extended fund facility. strengthening amro ’ s capacity lastly, for the institutionalized cmim to be more effective, i hope amro is able to play a bigger role in providing first - class policy recommendations and independent and alternative views on asia with a regional perspective distinct from other global international organizations. if amro did not have independent and sufficient surveillance and program design capacities, it might be a more efficient option to rely on global organizations such as the imf, without having a separate regional safety net. so, i believe well - functioning, professional, highly respected and capable amro is a pre - requisite to the success of the cmim. new opportunities the asian financial crisis in 1997 was a wake - up call for us to understand the importance of developing regional safety nets and enhancing recycling of asian savings. i believe the recent advance of it technology and the growing interest in improving cross - border payment systems and developing cbdcs