be at stake nowadays, with the conjunction of three main trends that have a disruptive effect on the market : new solutions, new behaviors and players, new regulations. first, innovative payment solutions based on sepa schemes are very likely to emerge. one prime example of this possible groundswell is the preparation, under the impulse of the euro retail payments board ( erpb ), of a pan - european instant payments scheme by the european payments council ( epc ), based on the existing sepa credit transfer scheme. this new scheme, which should be finalized by the end of 2016 and operational before the end of 2017, will serve the development of further innovative products, especially via smart devices, for proximity and mobile payments. this is a relevant example of how the harmonisation and standardization work done in the context of the so - called “ sepa 1. 0. ” for legacy payment instruments ( direct debit and credit transfer ) may serve as a basis for market players to develop new innovative real time and paperless payment solutions, what i would call “ sepa 2. 0. ”. secondly, we observe the emergence of new payment behaviors and new market players, in relation with further technological innovations. this is mostly led by the rising prominence of e - commerce, which has fundamentally changed payment usages in the last few years. the bis central bankers ’ speeches search for a payment instrument adapted to these evolutions has first led to a wider usage of payment cards, beyond proximity transactions. these card - not - present payments over the internet now account in france for nearly 7. 5 % of all card based - transactions in volume, and for 11. 6 % of the overall value of these transactions. nevertheless, new technologies are gaining traction, by capitalizing on devices such as smartphones and tablets and allowing to get rid of “ plastic ” payment cards through virtual wallets. these general changes, which are already affecting traditional actors, are reinforced by the introduction of new players, either the much talked about “ gafa ” ( google, apple, facebook and amazon ) or the smaller actors concentrating on niche payment services, that capitalize on these new technologies to enter the payment cards market. to be fair, this move “ out of plastic ” is a bit slower than forecasted some years ago : but it shall probably accelerate. lastly, in europe, the third trend that is also deeply influencing the payment cards market is the current regulatory renovation that is taking place, notably through the implementation of the

analyses of new forms of risk to financial stability and the changes in our monetary policy operating conditions that can occur due to digital innovations such as distributed ledger technology and fintech. and given that considerable changes in the relations between north korea and south korea are expected going forward, it will be necessary as well to prepare in advance for the new role demanded of our central bank, on the basis of our research on the north korean economy carried out so far. fellow bank of korea staff! with regard to our internal management, i have said that over the next four years we will put an emphasis on ‘ change and innovation, ’ and improve our systems and customs. to put this promise into practice, we gathered staff members ’ opinions, among which of those that could be immediately reflected have been put into practice after the necessary institutional arrangements. we delegated to lower levels authority in internal management related for example to human resources affairs, and greatly simplified our reporting procedures. we will have to aspire to devise measures that would improve the matters now under consideration as well. i would like to stress again that the ultimate purpose of these internal management improvements is to heighten our organization ’ s efficiency and productivity. in view of the fact that the system can control people ’ s thinking and behavior, we will have to push unceasingly ahead with system improvements as well. however, if we want our system improvements to bear fruit, then our organizational culture and our staff members ’ awareness will also have to change, along with the system. in particular, if the staff members at the senior level firmly accept these changes, take the initiative and set examples for others, then there will be tangible results. we will also have to devote redoubled efforts to managing the risks that can occur in the conduct of our institution ’ s operations. if we do not properly manage our it system, security and legal risks, the bank of korea ’ s external reputation can be greatly damaged. before any adverse incident occurs there is a tendency for small problems to gradually appear that provide us with forewarnings. and if such signs are sensed, even if they are only trivial, we should not just dismiss them but must investigate their causes and respond to them thoroughly. fellow members of the bank of korea! 2 / 3 bis central bankers'speeches recently our economy is continuing to grow at the level of its potential growth rate and maintaining a favorable external credit standing, unlike some emes that are experiencing financial and economic unease. i think that you