##tech market and for fostering competition and innovation in the banking sector. the most prominent example might be the new – and already very successful – instant payment system pix. the central bank ’ s efforts have resulted in a considerable increase in competition – according to one study, more than 100 brazilian fintech companies are now active in the field of payments. 4 this means that usage patterns are evolving. digital financial and payment services are gaining ground. just a year and a half after pix was launched, more than half of the brazilian population have already used it, underlining just how quickly the adoption of digital payments can spread. 5 the situation is changing in germany, too, where contactless payments based on nfc technology are particularly popular. for instance, at the end of 2021, three out of four ( 73 % ) payments of the debit card6 common in germany were contactless. 7 in germany, there are more than 100 million cards in circulation. the system is operated by the german banking sector and is independent of international credit card companies like visa and mastercard. in germany, more and more customers are reaching for their smartphone instead of cash or card when paying for goods. here, mobile payments are gaining more momentum by the day. something similar is happening in brazil. the average citizen here owns 1. 6 smartphones8 and payments with digital and mobile wallet are growing. brazil ’ s instant payment system pix contributes to this, offering various overlaying services including qr code and nfc payments. 9 in germany, savings banks and cooperative banks also run a successful peer - to - peer ( p2p ) mobile payment service. thus, in germany, the topic of smartphone payments is being pushed by both bigtech firms and banks. 3 challenge 2 : new actors in the payments markets this brings us to an important driver of digitalisation in the financial industry in both brazil and germany : new players, namely fintech and bigtech firms. fintech players – that is, fledgling start - ups offering innovative technology - enabled financial services – also feel very much at home in the payments market. these newcomers are starting out on greenfield sites and are able to build their systems from the ground up in a way that lets them leverage the opportunities offered by the platform economy and digitalisation. one example of this is smartphone banks such as revolut in the united kingdom or n26 in germany and also here in brazil. 2 / 7 bis central bankers'speeches a key element of the new

andreas dombret : sino - german financial stability forum – concluding remarks concluding remarks by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the sino - german high level workshop, frankfurt am main, 11 july 2011. * * * dear mr yi gang, dear guests, after a long day of intensive discussion, concluding remarks should be short. so let me only briefly point to some consensus and challenges ahead. despite different stages of development of both countries, the discussion at the workshop has shown a broad consensus on the importance of price stability as the primary objective of monetary policy, that fiscal stability is not only a prerequisite for a balanced and sustained economic growth but also for national and global financial stability and that a sound and a stable banking system is the first line of defense against financial crisis. but the discussion has also highlighted and underlined important challenges ahead. i will briefly go through some of these challenges and structure my further remarks by the main surprises during the financial crisis : the dynamic of contagions and market dynamics, the spillovers into the real economy and the vulnerability of countries. turning to the first point, the financial crisis has shown an unexpected strong and fast transmission of the us sectoral financial shock around the globe. despite the fact that significant progress has been achieved to measure and identify risk exposures of globally acting banks and the shadow banking system, for example, by enhanced network analysis, important challenges remain. beyond an intensified monitoring of these risk exposures on this more microprudential level, global monitoring of capital flows and changing financial transmission channels of external shocks have to be enhanced. moreover, we should not only focus our monitoring on the ups and downs of exchange rates, interest rates and cds, but even more on the underlying reasons for these movements. therefore, an extended monitoring should also have a close eye on the significant structural changes of the financial markets and systems, which build the most important base for different response patterns to financial crises across time and countries. in my view, it might also be fruitful to intensify the discussion about an appropriate assignment of roles in this regard on a global, regional and national level. there are no doubts that the imf has a significant comparative advantage on the global level, due to its broad country coverage. the imf should use this potential in an intensified bottom - up and top - down approach in collecting relevant data and information and using this kind of information for enhanced in - depth analysis – in