joachim nagel : the shape of money – yesterday, today and tomorrow opening speech by dr joachim nagel, president of the deutsche bundesbank, at the payments symposium, frankfurt am main, 26 september 2022. * * * 1 introductory remarks ladies and gentlemen, welcome to this year's bundesbank payments symposium. there are few other opportunities to exchange thoughts with payment experts like yourselves in such an intimate setting. especially in a market that is as fast - moving as payments, central banks stand to benefit enormously from what you have to say. after all, you're the ones that customers come to first to with their wishes. regrettably, i am unable to be with you today in person due to other commitments. but my executive board colleague burkhard balz and a number of our experts are in attendance to discuss the latest developments in payments with you – to forge new contacts and nurture existing networks. 2 change of shape networks are also the topic of my speech today. this may come as a surprise to some of you here at this event, but i'd like to start by talking about the construction of the rail network in germany ; and then i'll bring in the development of a digital network, specifically the internet. in their own way, these two technical revolutions changed the demands placed on money. the dawn of the railway age in germany was in the mid - 19th century, some time after its european neighbours. the first tracks had been laid in britain in the 1820s, while germany's first long - distance line – connecting leipzig and dresden – went into operation in 1839. a little earlier, in 1835, the locomotive " adler " was already serving the six - kilometre line between nuremberg and furth. germany was a patchwork of many small states back then, but that didn't stop the rail network from quickly growing to a remarkable size. by the end of the first world war, it spanned around 45, 000 km in length. railway construction was pivotal for spreading the industrial revolution. having a welldeveloped rail network was indispensable for transporting iron and coal quickly and at low cost. industrialisation sent goods production and trade soaring to previously unimaginable levels. that drove up demand for money as well. the monetary system at that time, though, was still based on coins made of precious metals. the need for cash rose so sharply, in fact, that the mints in the small states were no longer

systems. these developments have also seen the growing presence of asian financial institutions in the region. in 2011, central banks in the asean region have endorsed an asean financial integration framework which will pave the way for greater market access and operational flexibility for qualifying financial institutions. this represents the collective commitment of the region in the efforts to strengthen the region ’ s capacity to intermediate regional and international financial resources to productive activity in the region. a third imperative is the alignment of the financial sector to asia ’ s demographic trends. demographic profiles vary widely across asia and have a significant impact on economic potential of the region. for many parts of asia, demographic developments foreshadow significant changes in consumption, health and educational patterns. these changes have reinforced the significance of domestic sources of growth. asia ’ s rising domestic demand has been supported by the development of a much broader range of financing options. going forward, the access to financing for healthcare, education and retirement will reduce the need for high levels of precautionary savings, and thus strengthen further domestic demand in the economy. the fourth imperative relates to ongoing efforts to expand financial inclusion. financial inclusion has been, and must continue to be, a key component of asia ’ s overall strategy to achieve balanced and equitable growth. indeed, in the advanced economies, there is a now greater focus and attention on expanding financial inclusion to support the strength of recovery. emerging asia has achieved remarkable progress on this front. the period of higher growth has been accompanied by lifting millions out of poverty. asia however still remains the home of two - thirds of the world ’ s poor. therefore, much still remains to be done. the imperative is to arrest the widening income disparities and in inequality through providing more households and small businesses with meaningful access to financial products and services, thus bringing them into the economic mainstream. another is ensuring that as asia develops, households, particularly in the lower income groups, do not become financially excluded because financial products and services become increasingly unaffordable or complex, or due to practices of financial institutions which increase barriers to access. finally, asia is now building on the progress that has been made in strengthening the resilience of our financial systems. authorities in asia are at various stages of translating the global financial reform measures into local standards. in a number of countries in asia, the global financial crisis has also sharpened the focus on risks in financial institutions which are more systemically important. this includes having the regulatory reach that extends to institutions outside the formally regulated