FNA Broadcasts

With: | Anneke Kosse, Senior Economist (Bank for International Settlements) | Ajit Desai, Principal Data Scientist (Bank of Canada) Given the substantial volume of transactions processed daily, finding anomalies is much like finding a needle in a haystack. So, how can Anneke Kosse and Ajit Desai’s novel machine-learning framework enhance transaction monitoring?  Annke Kosse and Ajit Desai discuss their framework and how it significantly enhances the resiliency and efficiency of payment systems in this Payment Systems Broadcast.

The session follows Natsuki and Tunathon’s recent contribution to the IMF’s CBDC Virtual Handbook as we explored how strategic policy decisions and engaging intermediaries and end-users are key to addressing issues such as trust, public awareness and preference for existing payment methods.  We also looked at the recently introduced REDI Framework and how the regulatory strategies, educational initiatives, design, and deployment choices it outlines help pave the way towards CBDC adoption.  The session covered: * The Regulatory frameworks that offer the best prospects for fostering innovation while ensuring user protection  * The IMF’s CBDC Virtual Handbook and the potential implications on global CBDC Strategies * The key opportunities and challenges that CBDCs present for cross-border transactions  * The importance of public-private partnerships in supporting the successful implementation of CBDCs.

With: | David McKay (HSBC Innovation Bank) | Chad Reimers (TransUnion) As consumer scams and fraud become more sophisticated and complex, finding effective strategies and solutions to protect consumers becomes increasingly imperative. In session #16 of the Payment Systems broadcast, guests David McKay (HSBC Innovation Bank) and Chad Reimers (TransUnion) joined FNA to share their insights on how to effectively tackle the ever-evolving threat of fraud, safeguard consumers, and maintain trust in the financial system. Together, we explored the current trends and tactics organizations are deploying to combat fraud and the innovative technologies and strategies emerging to help protect consumers. The session covered: Current fraud prevention initiatives organisations are currently deploying to tackle fraud The role of consumer education and the challenge in protecting vulnerable clients. The PRS rules influence fraud prevention strategies and the challenge associated with ensuring compliance across different currencies and geographies. How organisations can strike the right balance between offering a seamless customer experience supported by robust fraud prevention measures.

With: | Arvinder Bharath (International Monetary Fund) | Beju Shah (Bank for International Settlements) Session #27 of FNA’s CBDC Broadcast delves into Project Polaris- a collaborative initiative focusing on the exploration and analysis of potential risk and mitigation strategies associated with tokenized securities and Central Bank Digital Currencies (CBDCs) Guest Arvider Bharath (IMF) and Beju Shah (Bank for International Settlements) joined FNA to guide us through the project, which aims to provide a comprehensive understanding of how these emerging financial technologies can impact the stability of the financial system. We also discussed the role and importance of technologies like blockchain and international collaboration as guests shared case studies and lessons learned from the project. The key takeaways from Project Polaris Recommended risk mitigation strategies Case studies and lessons learned from Project Polaris

With: | Cameron Nili (Accenture, World Economic Forum) | Sandra Waliczek (World Economic Forum) Overview Guests Cameron Nili (Accenture, World Economic Forum) and Sandra Waliczek (World Economic Forum) joined FNA to give an insight into their newly published report, ‘Modernizing Financial Markets with wCBDC‘ as we took a closer look at the key concepts explored in the report, highlighted potential benefits and challenges associated with wholesale CBDCs, and discussed critical policy considerations for central banks. The session covered: * * Key definitions and conceptual distinctions around wholesale CBDCs (wCBDCs) and tokenized central bank money provided by the report. * Potential benefits and use cases where wCBDCs could complement existing financial infrastructures, as well as challenges in coexisting with current systems. * Critical issues highlighted by the report’s findings, such as liquidity management, interoperability across platforms, accessibility implications, and crucial risks for policymakers to mitigate.

| David Chaum (CEO Elixxir.io & Original Founder of XX.network) | Animesh Ghosh (Founder & CEO, Currency Network) In this session of FNA’s 60-minute webinar series, The CBDC Broadcast, guests David Chaum and Animesh Ghosh join us to offer insight into Currency Network’s vATM solution. We’ll hear how this innovative CBDC solution aims to break down the barriers to CBDC adoption by simplifying and reducing the cost of CBDC implementation as our guests discuss how the vATM solutions offer frictionless CBDC payments through the contactless PoS system while ensuring cash-like privacy by combining advanced cryptography with financial messaging. The session covered: The key challenges hindering widespread CBDC adoption and how vATM aims to address these issues How the vATM solution simplifies the implementation of CBDC for Central Banks and Commercial Banks How the solution leverages existing merchant payment infrastructure to reduce the cost and complexity of CBDC rollout How the vATM solution offers cash-like transaction privacy for CBDC users The eCash 2.0 technology underpins the privacy capabilities of the vATM solution

With: | Thomas Moser (Alternate Member of the Governing Board, Swiss National Bank) | David Newns (Head of SIX Digital Exchange) Guests Thomas Moser and David Newns joined FNA to explore the third phase of Project Helvetia, in which the Swiss National Bank and SIX test the introduction of a live CHF wholesale CBDC on a distributed ledger technology (DLT)- based financial market infrastructure. In this session, we focused on the liquidity management implications of settling tokenized assets in Central Bank money, assessing the impact on liquidity demands and liquidity fragmentation risk before considering the lessons learned from the pilot project so far. This third phase of Project Helvetia continues pivotal work previously undertaken alongside the Bank for International Settlements. The multi-phase project is a significant endeavour aiming to understand how central banks could offer settlement in central bank money.

With: | Ivan Mortimer-Schutts (Advisor, SIMBAS) | David Rennie (Digital Identity & Data Assurance Specialist at IDEMIA & DPF Privacy & Identity Working Group Lead) In today’s digital age, safeguarding payment systems against fraud, scams, and money laundering is paramount. This session brings together experts to explore the intricate nexus between these critical challenges. In this session, guests Ivan Mortimer-Schutts (SIMBAS) and David Rennie (IDEMIA) joined FNA to explore the regulatory frameworks, emerging technologies, and best practices that harmonize fraud/scam prevention with robust anti-money laundering controls. Together, Ivan and David shared their insights on how to strike the right balance between leveraging innovations like digital identity and data analytics while upholding principles of privacy and security.

With: | Jannah Patchay (Executive Director, Policy Lead & Originating Member of the Digital Pound Foundation) | Elise Soucie (Director of Global Policy and Regulatory Affairs, Global Digital Finance) Guests Elise Soucie (Global Digital Finance) and Jannah Patchay (Digital Pound Foundation) joined the CBDC Broadcast to discuss what’s next for the Digital Pound as we asked how the Bank of England can build trust in the digital currency, what they can do to ensure appropriate safeguards are in place to maintain stability, and when we can expect to see a UK CBDC. The session follows the Digital Pound Foundation’s submission to the Bank of England’s Discussion paper, outlining key considerations for developing a regulatory framework for digital forms of money, including stablecoins and CBDCs. We’ll also look beyond the UK to explore what can be learned from other digital currency initiatives worldwide, to examine what advantages the UK has in pioneering this technology and the opportunity programmability brings for innovation and smart contracts. The Session Covered: The Digital Pound and how it differs from stablecoins How the UK’s approach to CBDCs differs to other jurisdictions The use cases for a wholesale and retail CBDC The role of banks and other payment system providers in the Digital Pound Project How a UK CBDC that is seamlessly interchangeable with other forms of money would work in practice The UK and the digital financial and digital money landscape in 2024

| Perttu Korhonen, Qatar Financial Centre Regulatory Authority | Matt Grasser, Cambridge Suptech Lab Perttu Korhonen and Matt Grasser will join FNA’s Suptech Broadcast on Thursday, 14 December, for a session focusing on the complementary capabilities of regtech and suptech. First, they will explore how integrated architectures optimise risk management and advance supervisory objectives. Second, they will discuss what skills industry professionals need to effectively take advantage of new technologies shaping the regulatory and supervisory landscape.

With: | Dirk Bullmann ( Global Head of Public Policy, CLS) Atomic settlement promises instant, simultaneous transactions, but does this represent a quantum leap for post-trade efficiency or a liquidity trap? In this session of the FMI Broadcast, Dirk Bullman cuts through the noise to make sense of what atomic settlement means and the benefits and drawbacks it offers as we ask whether molecular settlement could provide a solution that balances speed and liquidity needs.

With: | Joachim Samuelsson (CEO, Crunchfish) | Sunil Karkera (Product Director, Digital Payments IDFC First Bank) In today’s digital world, consumers expect seamless omnichannel banking and payment experiences, including the ability to make transactions offline. However, enabling secure approaches to offline payments presents many technological challenges. We aim to address some of these challenges in Session #22 of the CBDC Broadcast, with guests Joachim Samuelsson (Crunchfish) and Sunil Karkera (IDFC First Bank) joining FNA to explore cutting-edge approaches to offline payments and how partnerships between fintechs and banks can deliver innovative solutions. Our guests shared insights into making offline payment systems scalable for mass adoption as we learned about the development and integration of such systems at an enterprise scale. Together, we also discussed considerations around consumer education and merchant onboarding when it comes to launching advanced payment technology. The session covered: The use-cases and stability of offline payments Techniques for encrypting data and verifying transactions securely offline The technology behind offline transactions with the Digital Cash SKD to which IDFC First bank has access Feedback from pilot users and QR code technology for payments

With: | Bénédicte Nolens (BIS Innovation Hub) | Rosie Hampson (Goldman Sachs) How can collaboration and innovation accelerate the transition to sustainable finance? Guests Rosie Hampson (Goldman Sachs) and Bénédicte Nolens (BIS Innovation Hub) joined FNA for Session #13 of the FMI Broadcast, sharing insights from Project Genesis 2.0 – a collaborative initiative exploring the technical feasibility of digital green bonds from a central and private banking perspective. Our guests delved into Project Genesis 2.0, discussing key issues, including how AI/ML can improve sustainability data, regulatory challenges and opportunities for further collaboration before looking at how to drive further engagement in green initiatives to drive systemic change within the financial sector. *This session covered: * * Project Genesis 2.0, new tech solutions and innovations driving progress on the sustainable finance front * The key technical findings from Project Genesis 2.0 and how the prototype being developed can address issues such as greenwashing * How more collaborative efforts between central banks, regulators, financial institutions and fintech can accelerate green finance innovation and adoption * New policies or regulatory changes that could accelerate the transition to sustainable finance * Future developments that could be the driving force behind future progress in the sustainable finance space and more!

With: | Danny Russell (Bank of England) | Catherine Gu (Visa) There are many challenges surrounding the development of CBDCs, from maximizing interoperability to encouraging public-private sector collaboration and driving consumer adoption. Aiming to address these challenges is the BIS Innovation Hub London’s Project Rosalind- a joint experimentation with the Bank of England which aims to develop prototypes for an application programming interface that could best enable a Central Bank ledger to interact with private sector service providers to enable the safe provision of retail payments. To offer further insight into Rosalind- named after British Scientist Rosalind Franklin and her work regarding DNA sequencing, guests Danny Russell (Bank of England) and Catherine Gu (VISA) joined FNA for Session #21 of the CBDC Broadcast. In this session, we discussed the motivations behind the project and how it allows for further experimentation with CBDC design and interoperability, as well as the importance of public and private sector collaboration, drawing on the role of VISA and other private sector partnerships.

| Matei Dohotaru, Senior Financial Sector Specialist (World Bank Group) | Julapa Jagtiani, Senior Economic Advisor Economist, Federal Reserve Bank of Philadelphia Session #9 of the Suptech Broadcast brought together Matei Dohotaru, Senior Financial Sector Specialist at World Bank Group and Julapa Jagtiani, Senior Economic Advisor and Economist at the Federal Reserve Bank of Philadelphia. Together, Matei and Julapa will discuss how suptech needs in advanced economies contrast to those in emerging markets and delve into global, collaborative suptech initiatives and their impact.

With: | Sharmyn Powell, Chairperson, Fintech Working Group, East Caribbean Central Bank (ECCB) Sharmyn Powell (ECCB) joined session #20 of The CBDC Broadcast to discuss the promise and perils of emerging digital currencies. Drawing upon her deep expertise, Sharmyn shared her perspective on how digital currencies, from rCBDCs to stablecoins and tokenized deposits, are changing the payment ecosystem and offered insight into the Dcash rCBDC project. The session covered: * The main motivation for rolling out DCash and an update on DCash adoption * The factors driving/curbing DCash adoption, including education, internet access and use cases * Why digital monies like cryptocurrencies, stablecoins, and retail CBDCs have seen limited adoption so far * The role of regulators and supervisors regarding digital currencies * How digital currencies can foster innovation and benefit the public * how can CBDCs and vehicles like DCash replicate the benefit cash offers at-risk groups

With: | Ramunas Baravykas, Director of Data and Statistics Department, CDC, Bank of Lithuania | Jermy Prenio, Principal Advisor, Financial Stability Institution, Bank for International Settlements (BIS) Technology innovation is rapidly transforming financial supervision. Session #8 of the Suptech Broadcast brought together suptech specialists Jermy Prenio (Bank for International Settlements) and Ramunas Baravykas (Bank of Lithuania), who explored the emerging technology shaping the future of the suptech landscape. Jermy and Ramunas drew upon their extensive hands-on experience to offer a global and EU perspective on key topics, including data analytics, cross-border collaboration and the proportionality and ethics of AI to offer insight into how central bankers and policymakers can take advantage of the opportunities suptech for more effective oversight.

| Kimmo Soramäki (FNA) | Martin Kyle (Payments Canada) Martin Kyle, Chief Information Security Officer at Payments Canada, joined FNA’s Kimmo Soramäki to discuss the value of Digital Twins and how digital replicas of payment systems are accelerating the ability to design better systems, reduce developmental costs, increase the speed of deployment and enable smoother regulatory approvals. Kimmo will also share insight into how this technology applies to other financial areas, including CBDC development and liquidity management. The session covered: Digital Twins in the context of financial services and what use they offer How closely can a Digital Twin replicate an existing system How Digital Twins support the function of an FMI Examples of projects where Digital Twins have delivered value to payment and settlement systems The data required and the purpose it serves Digital Twins and new innovations such as CBDCs and Digital Currencies The requirements to develop a Digital Twin Capability

| Aniko Szombati, Chief Digital Officer, Magyar Nemzeti Bank | Chris Ostrowski, Co-Founder and CEO, SODA Guests Aniko Szombati, Chief Digital Officer Magyar Nemzeti Bank and Chris Ostrowski, Co-founder and CEO of SODA, joined FNA for Session #19 of the CBDC Broadcast, Testing DLT-based Central Bank Solutions. In this session, we delved into the Central Bank of Hungary and SODA’s joint project on the use of digital solutions, including rCBDCs and NFTs, as we gained valuable insights into the pivotal role of public engagement and hands-on experiences in shaping the development and adoption of rCBDs by leveraging NFTs and coin collecting to improve the understanding and implementation of digital currencies. Together, we explored how the Central Bank of Hungary is approaching adoption issues ahead of rolling out an rCBDC in an approach that cultivates the consumer use case for rCBDCs and prepares the public for the introduction of an rCBDC. The Session Covered: The Central Bank of Hungary’s approach to launching an rCBDC and how it differs from the majority of current pilot projects The insights gained by implementing a blockchain-based ledger on its own infrastructure to test-drive digital solutions aimed at the public Lessons to share with other Central Banks considering the adoption of rCBDCs The public’s response to activities such as coin collecting and token swapping on the Money Museum mobile application and how it has developed and refined the rCBDC concept Whether the Central Bank of Hungary’s approach will foster the consumer use case for digital currencies and rCBDCs Potential future developments and trends in the realm of digital money, including rCBDcs and how they could shape the financial industry and society in Hungary and around the world.

With: | Samuel Eddie Mogensen, Digitalization Task Force Lead, Innovation & Secretariat Financial Stability, Danmarks Nationalbank | Michal Vodrážka, Director of the Financial Market Regulation Division III, Czech National Bank While some consider retail CBDCs as necessary instruments in a rapidly evolving financial landscape, capable of enhancing the retail payment ecosystem and the economy, some remain agnostic. In this session, guests from two prominent European Central Banks, Samuel Eddie Mogensen (Danmarks National Bank) and Michal Vodrážka (Czech Republic National Bank), joined FNA for a thought-provoking debate that took us back to the fundamental question, do we actually need a retail CBDC, as we examined divergent views on the potential rCBDCs offer with two jurisdictions who have no immediate plans to design or test one.