FNA Broadcasts

As the financial industry continues to evolve, the adoption of suptech has become increasingly important for Central Banks as well as financial authority bodies globally. Successfully implementing suptech requires careful consideration of key components such as regulatory efficiency and effectiveness, talent and technology investment, and collaboration with industry stakeholders.

In Session #4 of the Suptech Broadcast, two seasoned practitioners, Rafael Gomes, Managing Director at Accenture and Oliver Wünsch, Partner at Oliver Wyman, joined FNA to continue the discussion on the critical factors that contribute to a successful suptech strategy, offering examples of success stories to provide inspiration for those looking to adopt these solutions.

Nowadays, it seems everything can be tokenized, from securities to real estate, commodities to equity. More recently, in response to retail CBDCs and stablecoins, tokenising bank deposits has emerged as a new form of money based on commercial bank money.

In Session #9 of the FMI Broadcast, guests Keith Bear (University of Cambridge) and Philip Enness (JP Morgan) joined FNA to explore the motivations, benefits, challenges and main issues that arise from the tokenization of bank deposits. We discussed how the issuers of tokenized deposits, namely licensed depositary institutions, could become challenger FMIs aimed at issuing a new form of money.

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Cross-border payments are traditionally slow, expensive and opaque. So, how is the Bank for International Settlements proposing to overcome these challenges through a multi-CBDC platform based on DLT technology?

In session 14 of FNA’s monthly webinar series, The CBDC Broadcast, guests Daniel Eidan (Bank for International Settlements) and Ousmène Jacques Mandeng (Accenture) join FNA to discuss Project mBridge, which aims to solve the challenges associated with cross-border payments through a CBDC platform based on new blockchain technology.

The platform aims to facilitate cheap, real-time peer-to-peer cross-border payments and foreign exchange transactions using multiple CBDCs while ensuring compliance with regulations set by each jurisdiction.

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How are new regulations contributing to the operational resilience of decentralized payment systems in wholesale banking? Patrick Papsdorf (Head of Payments Oversight, European Central Bank) and Claudine Hurman (Director of Infrastructures, Innovation and Payments, Banque de France) joined the Payment Systems Broadcast to discuss.

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| Saskia Devolder, (SWIFT)

| John Jackson, (Bank of England)

ISO 20022 is expected to create a global and open message standard across all business lines of the financial industry. Several long-lived financial communication standards, such as ISO 15022 (cross-border securities settlement), ISO 8583 (credit and debit transactions), and MT messages (SWIFT propriety for correspondent banking and FX transactions), will be replaced with a new standard. ISO 20022 is here, with migration beginning in November 2022 and expected to be completed by November 2025.

In Session #7, guests Saskia Devolder (SWIFT) and John Jackson (Bank of England) joined FNA to discuss the key features and expectations around adopting the ISO 20022 standard. Together, we explored what ISO 20022 means for organisations and how it could change the financial ecosystem as we know it.

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| Catherine Gu, Visa

Digital money is not a new thing. It’s been around for decades in the form of reserves at the central bank and commercial bank money. But today, we have additional forms of digital money, such as rCBDCs. We also have what we call challenger forms of money with stablecoins as the main example. With the new entrants to the money ecosystem, we must ask: How will the different forms of money interact? Are they substitutes or complements? Is it competition or coexistence?

To answer these questions, FNA was joined by guests Catherine Gu (Visa) and Carmelle Cadet from EMTECH.

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Guests Patrica C Mosser (School of International Public Affairs, Columbia University) and Jason Healey (School of International Public Affairs, Columbia University and National Management Centre, US Cybersecurity and Infrastructure Security Agency) joined FNA to provide insights into the various types of cyber risks as we discussed the new responsibilities mitigating cyber risks creates and how it is shaping the future direction of Suptech.

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| Simon Chantry, Bitt

Many central banks are studying, designing, prototyping, or rolling out retail CBDCs. Motivations differ significantly across jurisdictions, but there is one potential advantage that could be common to all cases.

If central banks agree on some basic technological foundations, retail CBDCs could interoperate and become a solution to cross-border retail payments. Is this an overlooked potential benefit of retail CBDCs?

We asked guests Simon Chantry (Co-founder & CIO, Bitt) and John Kiff (Head of CBDC/ Digital Captial Markets Advisory, Satoshi Capital Advisors), who joined session #12 of the CBDC Broadcast, to discuss.

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| Commissioner Hester M. Pierce, U.S. Securities and Exchange Commission

We are in the midst of studying and discussing the potential effects of a digital dollar, a digital liability issued by the Federal Reserve, available to everyone in the United States-in other words, a retail CBDC for the United States of America.

Theoretical benefits around the idea of a CBDC include greater efficiency and redundancy in the payments ecosystem, a field for innovation, greater financial inclusion, and the potential to lay the foundations for better cross-border transactions. But not only are those benefits still to be verified, but there are also risks as well in the form of financial instability, operational, reputational, surveillance, and money laundering risks. The devil is in the details, and CBDCs are not the exception, If a digital dollar is issued, its regulation and design will be particularly responsible for its success.

Having explored CBDC motivations and challenges from an Asia-pacific, Latin American, UK and Canadian perspective, we now turn our attention to the United States. In this session, guests Commissioner Hester M. Peirce from the U.S. Securities and Exchange Commission (SEC) and Professor Patrick McCarty, Adjunct Professor, Derivatives/ICOs and Cryptocurrencies at Georgetown University Law Center join FNA to offer an insight into CBDC deployment and its relationship with other digital forms of payment and benefits/implications of a national rollout from a U.S. perspective.

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Session #2 of The Suptech Broadcast featured guests Perrtu Korhonen (Qatar Financial Centre Regulatory Authority) and Clara Machado (Banco de la República), who joined FNA to explore how payments data analytics and anomaly detection have evolved over recent years, focusing on the integration of new datasets for RTGS Stress Testing.