International Contact Group for the Great Lakes (ICG) on the Peace Agreement between the Democratic Republic of the Congo and the Republic of Rwanda signed in Washington on 27 June 2025
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Eurogroup presidency: three ministers put forward their candidacies
Three ministers have put forward their candidacy to become president of the Eurogroup:Carlos Cuerpo, Paschal Donohoe and Rimantas Šadžius. The election of the new president will take place at the next meeting of the Eurogroup on 7 July. The president is elected by a simple majority of the Eurogroup ministers, in line with the Treaty’s Protocol 14 on the Eurogroup.
Tide of change in the Philippines while women revive watersheds and livelihoods
On the ground, the women of this tropical area meet to repair the torn nets, to sort the catches of the day and prepare their harvests for the market.
Among them, Christina Guevarra, who gently releases a blue swimming crab from her net. “From February to May, we are grateful,” she told the UN before International Tropical Day marked every year on June 29. “But after these months, especially when the rainy season begins, we have to find other ways to win. »»
Christina Guevarra removes the crabs from fishing nets.
Simple but difficult life
Christina’s family, like many others in Sasmuan, is based on the river bonus, an increasingly threatened livelihood by the drop in fish populations and environmental degradation.
“It is difficult in coastal communities like ours because we depend so much on the harvests of the river,” she said. “Life for us, the fishermen, is simple, but it is also difficult. »»
For generations, the local population depends on the coastal wetlands of the Sasmuan Pampanga, which is part of a watershed that drains in Manila bay.
But pollution, poor waste management and unsustainable practices are now endangering its biodiversity and the local economy.
“The waste we see in the river also comes from communities upstream,” said Irene Villar, deputy chief of Pampanga’s Environment and Natural Resources Office. “Even with an appropriate provision and policies of waste, the application remains a challenge.”
Edna Bilacog and Rose Ann Tungol supported their families as waste segregators.
To solve these problems, the Integrated River Basin Management (IRBM) project which is funded by the Global environmental installationimplemented by the United Nations Development Program (Predict) has established a partnership with the Provincial Government of Pampenga and local groups to promote sustainable practices, in particular not only on the conservation of sailors, but also on edifying vulnerable communities, especially women.
In Sasmuan, women like Edna Bilacog and Rose Ann Tungol find work in a material recovery installation, sorting household waste. Their salary, around 175 pesos per day (US $ 4), is well below the local minimum wage. “What we are barely gaining from our needs,” they admit, but their work helps support their families.
Net gain
Others, like Maricar Guevarra, relied on traditional crafts. A weaver qualified for over 20 years, she earns about $ 4 per repaired net and $ 13 for a big known as a pumpkinwhich takes four days to finish. “It was my main source of income, especially when my husband fell ill,” she said. To reach both ends, she also makes the laundry and sells homemade meals.
Women also lead the crab trade, disentiling the crustaceans of the nets and preparing them in the market, although the unsustainable aquaculture of neighboring fish ponds threatens their livelihood. In response, many have diversified. During the dead, they work as aid, workers or store employees in neighboring cities.
The blue swimming crab is abundant in the coastal wetland of the Sasmuan Pampanga.
In the village of Batang 2nd, a group of women transforms the Purslane Sea, a bad shore, in Athara (Marinated salad), on the continent, Patricia Culala built a business around the crab paste. “The fat of the crab is the tastiest part-that’s what I preserve and sells in bottles,” she explained. “Thanks to this company, I was able to send my children to school.”
Sasmuan’s women are both resilient and innovative. But without lasting solutions, their future remains uncertain. Fair wages, the conservation led by the community and the management of responsible rivers are essential to preserve the wetlands and the lives they nourish.
Originally published at Almouwatin.com
Guterres hosts the peace agreement between Dr. Congo and Rwanda
The agreement is “an important step towards de-escalation, peace and stability in the eastern Democratic Republic of Congo and the Great Lakes region,” he said in a statement that evening.
A breakthrough in the middle of the crisis
Since the 1990s, the eastern DRC has been plagued by dozens of armed groups who have terrorized the population.
The government has long accused Rwanda of supporting the rebel M23 group that Rwanda denied.
Earlier this year, the M23 launched an offensive in the provinces of northern and southern Kivu, capturing cities and villages, including the provincial capitals Goma and Bukavu.
Thousands of civilians have been killed, hundreds of thousands of others have been moved and serious human rights violations have been committed.
UN’s commitment remains
The Secretary General congratulated the United States for his management in facilitating the mediation process, in coordination with Qatar and the African Union mediator, President Faure Gnassingbé of Togo.
He also recognized the contributions of the five co-facilitators designated by the Eastern African Community (EAC) and the Development Community of Southern Africa (SADC).
He urged the parties to fully honor their commitments under the peace agreement and online with United Nations Security Council resolution 2773 (2025)Including the cessation of hostilities and all other agreed measures.
Resolution, unanimously adopted in Februarycondemned the M23 offensive and called for the DRC and Rwanda to return to diplomatic talks.
The secretary general concluded his declaration by saying the UN, including through his peacekeeping mission in the DRC, Monusco“It remains fully determined to support the implementation of the agreement, in close coordination with the African Union, regional and international partners”.
By coincidence, the Security advice Friday to discuss developments in the DRC.
The secretary general representative for the country and the head of Monusco, Bintou Keita, praised the peace agreement as an important step towards the implementation of the conflict.
“A chance to turn the page”
The United Nations Agency for Refugees, Hcrechoed this message in a declaration On Saturday, saying that the agreement “offers a chance to stop the cycle of violence and travel and focus on solutions that restore dignity, stability and opportunity.”
In addition, he “can bring renewed hope to those who have endured far too long for too long,” added the head of the agency, the United Nations High Commissioner for Refugees Filippo Grandi.
“It is a chance to turn the page-ensure the protection of civilians, including refugees and people displaced internally, and advance lasting solutions that allow them to rebuild their life in security and dignity,” he said.
Originally published at Almouwatin.com
Faith in finance: the innovative path of Indonesia towards sustainable development
The country of Southeast Asia has already raised nearly $ 12 billion in thematic obligations, including blue bonds and Islamic investment instruments over the past seven years.
These efforts were supported by development partners, including the United Nations.
Putut Hari Satyaka, is the Deputy Minister of Financing and Investment of Development at the Indonesian Ministry of National Development Planning (Bappenas). He spoke to the UN News before a UN key Conference on development of development which begins in Seville on June 30.
UN News: How much money is necessary in Indonesia to reach the SDGs and what is your estimated financing gap?
Putut Hari Satyaka: The existence of an ODD financing lake remains an important challenge, especially for developing countries. Indonesia is no exception. The financing gap to fully achieve the 17 objectives and their objectives remains significant. With approximately $ 4.2 billions of dollars necessary for Indonesia to reach the SDGs, there is a funding gap of 1.7 billion of dollars which has not yet been resolved.
Putut Hari Satyaka, Deputy Minister for Financing and Development Investments at the Indonesian Ministry of National Development Planning (Bappenas).
UN News: How to reduce this gap?
Putut Hari Satyaka: We need an integrated and transformative approach, going beyond “business as usual”. For us, it means two things.
First, we must improve the use of public finances to be more effective, resistant and transparent. This includes improving budget alignment on the objectives of SDGs, strengthening the efficiency of expenditure and the guarantee that resources are effectively priority and used for sectors generating transformative discharge effects for sustainable development.
Second, we must be creative and innovative – which means that we must develop existing innovative funding methods and explore new ones. Some of the most important instruments and approaches are mixed finance, thematic obligations and denominational financing.
Indonesia has made great progress in this regard. We have created an ecosystem of a wide range of innovative instruments, attracting a diverse range of stakeholders and entities, to support the necessary regulations and to develop the empowering environment to maintain the market.
UN News: What is the denominational funding and what has been experienced by Indonesia so far?
Putut Hari Satyaka: Confessional financing, in particular in the Indonesian context, refers to financial practices based on religious principles, in particular, in the principles of Sharia law in Islam.
The families of Ache, in Indonesia, received subsidies in denominational cash to make improvements to their home.
As Indonesia has 241.5 million Muslims, 85% of the population and confessional social funding as zakat And waqf have been a longtime practice, deeply rooted in our society.
What is new is the allowance of these instruments towards the SDGs. Indonesia has made solid progress in the progress of Sharia law as part of its inclusive growth program.
Sharia law now increases by 14% per year, exceeding conventional finances. We also defend the scale, green sukukwhich is an obligation in accordance with Sharia law specifically issued to finance environmentally friendly projects.
This reflects the strong commitment of Indonesia to build a competitive financial ecosystem for denominational instruments, and we will continue to strengthen collaboration, stimulate innovation and guarantee that denominational funding plays a central role in our economic development.
UN news: are you able to raise new funding thanks to these denominational instruments? Critics sometimes say it’s just another way to reach the same funds you might get otherwise.
Putut Hari Satyaka: Yes, we are. With the largest Muslim population in the world, there is a massive potential in the pipeline of denominational financing to the SDGs.
In 2018, Indonesia published the first sovereign green in the world sukukRising $ 1.25 billion to finance renewable energy and climate adaptation projects.
Between 2019 and 2023, the government has collected around $ 1.4 billion through interior retail sales Green sukukEngage individual investors in climate financing. This demonstrates the high potential of green sukukboth at the national and international level.
The 17 sustainable development objectives provide the plan for a more equitable world.
We also see great potential in Islamic social funding. Indonesia zakat The potential is estimated between $ 18 and 25 billion dollars a year. The actual collection remains less than 5% of this potential, there is therefore clearly a large opportunity to strengthen social finance.
UN News: What lessons have you learned over the years and what advice do you have for national or offense governments interested in denominational funding?
Putut Hari Satyaka: Although we have made great progress in denominational funding, we have a lot of room for improvement, improvement and even exploration. Here are some potential lessons:
First and foremost, awareness is the key. As many consider denominational funding as well as community financing, the participation of society in these instruments begins with their understanding of their importance and how money will be used.
Second, we see that the close coordination and the concerted actions of the relevant stakeholders are crucial. The overlaps are inevitable without appropriate coordination. This is coordination – including with nourishment governments, where we see the room for improvement in order to broaden the denominational funding in Indonesia.
Finally, strengthening confidence takes time. Confessional financing is strongly based on public confidence, both in institutions that manage funds and in the way funds are used.
Like many other financing instruments, we have learned that transparency, responsibility and coherent communication are essential to win and maintain this confidence.
Originally published at Almouwatin.com
Dr Congo: New initiative to eliminate HIV in children “a hole of hope”
“Our country can no longer tolerate children born and grow with HIV, when tools exist to prevent, detect and treat this infection effectively,” said President Félix Tshisekedi at a recent government conference in the southeast province of Lualaba, when he launched the five-year initiative.
Supported by an initial commitment of $ 18 million in national funds, the presidential initiative to put an end to pediatric AIDS will focus on political leadership, strengthening systems and access to inclusive health care, in particular for children, adolescents and pregnant women.
It also align itself well with the global commitments of the DRC in the context of the objective of sustainable development 3 (ODD 3) to ensure a healthy life and promote well-being for all.
Children are lagging behind
The initiative marks a commitment renewed by the DRC to combat the extremely limited access of children to HIV prevention and treatment services.
While the DRC has made significant progress in the response to HIV in adults – 91% of adults living with HIV now have access to antiretroviral treatment – children continue to delay.
Only 44% of children living with HIV in the country are currently receiving vital treatment, a figure that has been unchanged for more than a decade.
Each year, thousands of Congolese children are still infected, often due to a lack of screening in pregnant women, depriving the health system of a crucial opportunity to prevent the transmission of the mother to the child as well as the safeguarding of the life of the mother.
“The eradication of pediatric aid is a moral imperative, an imperative of social justice and an indicator of dignity,” said Tshisekedi.
Four basic priorities
The presidential initiative targets four main areas:
- Improvement of the early detection and treatment of HIV for childrenAdolescents and pregnant women
- Prevent new infections in childrenAdolescents and mothers
- Guarantee systematic and immediate treatment for diagnosed
- Remove structural barriers Make young people’s access to health services
A breath of fresh air
The joint United Nations program on HIV / AIDS (Helpless) praised the initiative as an example of the national leadership necessary to fill the critical gaps in the global HIV response.
Susan Kasedde, director of the Pays de l’Onusids in the DRC, congratulated the initiative as “a breath of fresh air” at a time when funding for global development is under pressure.
“At a time when development funds experiences turbulence and risks compromise the systems that support the most vulnerable, the leadership initiative of President Tshisekedi is a headlight of hope,” she said.
According to UNUSID, Recent financing discounts threaten the critical HIV services, with drug stocks and condoms fearing to run out in a few months. Key areas such as prenatal tests, pediatric processing and data quality monitoring has also been affected.
Originally published at Almouwatin.com
Reinforcing global partnerships for development finance: EIB Group in Seville
The European Investment Bank Group (EIB) President Nadia Calviño, Vice-President Ambroise Fayolle and Andrew McDowell Director General of EIB Global, the group’s specialised arm devoted to increasing the impact of international partnerships and development finance, will be leading the EIB’s delegation to the 4th United Nations International Conference on Financing for Development in Seville, Spain from Sunday, June 29th until Thursday, July 3rd.
The EIB will announce new partnerships to boost g support for women’s health, entrepreneurship, and sustainable economic development across key global regions and sectors..contributing to the EU’s Global Gateway strategy for women’s empowerment and gender equality.
The EIB will also join an initiative lead by the Government of Spain, the Debt Pause Clause Alliance, to promote debt pause clauses in vulnerable countries. In the past year, the EIB has introduced this possibility for more than 70 countries. The press conference on this will be livestreamed here on Tuesday July 1st at 3PM (CET).
The EIB will join the initiative led by the Global Alliance Against Hunger and Poverty, which will focus on scaling up finance for climate-resilient social protection and smallholder agriculture, formalise a partnership with the World Food Programme (WFP) to bridge investment gaps and increase the impact of multilateral project financing, and renew its memorandum of understanding with the UN Food and Agriculture Organisation (FAO) to jointly transform food systems. The press conference on the initiative against poverty and hunger will be livestreamed here on Tuesday July 1st at 10:30AM (CET).
Together with other multilateral development banks the EIB will launch a new report on water financing. As a top multilateral financier in the sector, the EIB will further strengthen its support for access to safe water for everyone, everywhere through its upcoming Water Resilience Programme, which foresees an investment of 15 billion euros from now to 2027. This is also in line with the commitment adopted by MDBs in December last year to significantly increase support for the water sector over the five years from 2025 to 2030, particularly in vulnerable regions. It serves as a great example of MDBs working together as a system.
The EIB will also be convening, together with the Glasgow Financial Alliance for Net Zero (GFANZ), multilateral development banks and private sector leaders to boost concrete action for scaling up private investment in emerging markets and developing economies.
The EIB will also be unveiling several new financing deals, that are part of the EU’s Global Gateway strategy, and Memorandums of Understanding with partners across the world, including UN agencies and fellow multilateral development institutions. The EIB will also publish its 2024 Global Impact Report during the Summit.
“This is a very timely opportunity to reinforce Europe’s global partnerships for prosperity, win-win outcomes and peace, and to ensure that the most vulnerable are not left behind,” said President Calviño.
In case of interview requests for EIB’s principals in Seville, please contact:
Monica Faro (m.faro@eib.org, +34 678 37 7117)
Shirin Wheeler (s.wheeler@eib.org, +32 474 242 494)
Reinforcing global partnerships for development finance: EIB Group in Seville
The European Investment Bank Group (EIB) President Nadia Calviño, Vice-President Ambroise Fayolle and Andrew McDowell Director General of EIB Global, the group’s specialised arm devoted to increasing the impact of international partnerships and development finance, will be leading the EIB’s delegation to the 4th United Nations International Conference on Financing for Development in Seville, Spain from Sunday, June 29th until Thursday, July 3rd.
The EIB will announce new partnerships to boost g support for women’s health, entrepreneurship, and sustainable economic development across key global regions and sectors..contributing to the EU’s Global Gateway strategy for women’s empowerment and gender equality.
The EIB will also join an initiative lead by the Government of Spain, the Debt Pause Clause Alliance, to promote debt pause clauses in vulnerable countries. In the past year, the EIB has introduced this possibility for more than 70 countries. The press conference on this will be livestreamed here on Tuesday July 1st at 3PM (CET).
The EIB will join the initiative led by the Global Alliance Against Hunger and Poverty, which will focus on scaling up finance for climate-resilient social protection and smallholder agriculture, formalise a partnership with the World Food Programme (WFP) to bridge investment gaps and increase the impact of multilateral project financing, and renew its memorandum of understanding with the UN Food and Agriculture Organisation (FAO) to jointly transform food systems. The press conference on the initiative against poverty and hunger will be livestreamed here on Tuesday July 1st at 10:30AM (CET).
Together with other multilateral development banks the EIB will launch a new report on water financing. As a top multilateral financier in the sector, the EIB will further strengthen its support for access to safe water for everyone, everywhere through its upcoming Water Resilience Programme, which foresees an investment of 15 billion euros from now to 2027. This is also in line with the commitment adopted by MDBs in December last year to significantly increase support for the water sector over the five years from 2025 to 2030, particularly in vulnerable regions. It serves as a great example of MDBs working together as a system.
The EIB will also be convening, together with the Glasgow Financial Alliance for Net Zero (GFANZ), multilateral development banks and private sector leaders to boost concrete action for scaling up private investment in emerging markets and developing economies.
The EIB will also be unveiling several new financing deals, that are part of the EU’s Global Gateway strategy, and Memorandums of Understanding with partners across the world, including UN agencies and fellow multilateral development institutions. The EIB will also publish its 2024 Global Impact Report during the Summit.
“This is a very timely opportunity to reinforce Europe’s global partnerships for prosperity, win-win outcomes and peace, and to ensure that the most vulnerable are not left behind,” said President Calviño.
In case of interview requests for EIB’s principals in Seville, please contact:
Monica Faro (m.faro@eib.org, +34 678 37 7117)
Shirin Wheeler (s.wheeler@eib.org, +32 474 242 494)
The quest for cheaper and faster cross-border payments: regional and global solutions
Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the BIS Annual General Meeting
Basel, 27 June 2025
Cross-border retail payments are the subject of increasing attention. This is for two main reasons.
First, they play a growing role in the world economy, as international transaction volumes have been increasing at a faster pace than GDP growth. However, despite some improvements in recent years, many payment corridors remain poorly served, which results in slow transaction times and high costs and ultimately hinders economic growth and social cohesion. Moreover, this inefficiency undermines the benefits of globalisation, as the economic gains from lower trade barriers are diverted into rents within cross-border payment markets, rather than benefiting the businesses and households that make use of them.
Second, new risks are emerging. Geopolitical tensions, for instance, could lead to further fragmentation of global payment systems. Moreover, the expansion of stablecoins could introduce several additional challenges, including currency substitution risks and over-reliance on a limited number of dominant private issuers.
This is not a situation we can accept passively. We need continuous efforts to enhance cross-border payments, in line with the G20 Roadmap.[1] And central banks, given their role in ensuring the smooth functioning of payment systems, have a major role to play. Significant work has already been undertaken at international level, notably by the Bank for International Settlements (BIS) and the Financial Stability Board (FSB).
Today, I would like to share our experience with cross-border payments from a regional perspective, emphasising how regional payment infrastructures can be part of the solution. I will then discuss our vision for advancing cross-border payments at the global level.
The case for enhancing cross-border retail payments
Let me begin by underscoring the costs and risks of inaction.
Over the past few decades, the world has witnessed a surge in cross-border payments, driven by the globalisation of trade, capital and migration flows. According to some estimates, the value of cross-border retail payments could grow from close to USD 200 trillion last year to USD 320 trillion by 2032.[2]
Yet, the average cost of international retail payments remains high. For nearly one-quarter of global payment corridors, costs exceed 3%. And in too many cases, they are slow – one-third of retail cross-border payments took more than one business day to be settled in 2024.[3]
Worryingly, there are signs that progress is stalling. The FSB’s 2024 progress report revealed no improvements in costs and noted a deterioration in both costs and speed compared with 2023.[4]
Geopolitical tensions further compound these challenges, as they risk fragmenting global payment systems and undermining the rules-based international order. This could challenge established correspondent banking networks and lead to greater complexity, higher costs and, in a worst-case scenario, the splintering of the global payment system into multiple, non-communicating blocs.
This raises three pressing issues.
First, high costs and slow transaction times are hampering economic integration and growth, with small and medium-sized enterprises (SMEs) bearing the brunt. For SMEs operating on tight margins, exorbitant fees discourage them from participating in cross-border trade.
Second, the world’s most vulnerable groups – such as migrant workers sending remittances home – shoulder a disproportionate share of these costs. In many regions, sending money internationally remains prohibitively expensive. For example, the average costs of remittances to sub-Saharan Africa and South Asia stand at 7.7% and 6.2% respectively.[5] As it stands, the global Sustainable Development Goal target of lowering remittance costs to 3% remains a distant goal. The impact that reducing these fees would have on financial inclusion and well-being cannot be overstated.
Third, inefficiencies in cross-border payments have created a gap that alternative players, particularly in the crypto-asset space, are eager to fill. However, many of these solutions come with significant risks. Unbacked crypto-assets, for instance, are highly volatile and speculative in nature, creating risks for unsuspecting households and businesses and lending themselves to illicit activities.[6]
Furthermore, stablecoins come with their own set of challenges, which the BIS described in detail in a special chapter of its Annual Economic Report published this week.[7] Stablecoins carry credit risk, making them susceptible to runs, and pose fragmentation risks due to the multitude of stablecoins being issued. Some of these could end up trading at a discount, undermining the singleness of money.[8] Moreover, because a small number of issuers currently dominate the market, this could also give rise to concentration risks. Lastly, a key concern is the prevalence of US dollar stablecoins, which currently account for 99% of the global stablecoin market.[9] These stablecoins provide an easy way to store value in dollars, considerably increasing the risk of currency substitution in the form of “digital dollarisation”.[10] This phenomenon could have destabilising effects, particularly on emerging markets and less developed economies by impairing the effectiveness of domestic monetary policy. It may also increase the risk of capital flight in response to adverse economic shocks.
Enhancing cross-border retail payments at the regional and global level
To address inefficiencies in cross-border payments, we must offer an alternative that connects various parts of the global payments system and delivers tangible benefits in terms of speed and cost. At the same time, this solution must respect the integrity, sovereignty and stability of all countries involved.
At the ECB, we are pursuing this on two levels – regional and global.
Regional cross-border payments: the European experience
At the regional level, Europe serves as a compelling example of what an interconnected payments landscape might look like.
Of course, this has been facilitated by the creation of a single European market and the establishment of a monetary union. One of the key reasons for creating the euro was to support trade and investment by facilitating cross-border transactions. And the launch of our single currency offered a first solution to pay throughout the euro area – in the form of euro cash.
The logical next step was to develop European instruments for electronic euro payments. The Single Euro Payments Area (SEPA) emerged from close cooperation between the public and private sector to harmonise electronic euro transactions. As a result, individuals and businesses can make payments across the euro area at very low costs using credit transfers or direct debit.
The success of SEPA led to its expansion beyond the euro area and even beyond the European Union. Today, customers in 41 European countries can make euro payments quickly, safely and efficiently via credit transfer and direct debit, just as they would for domestic transactions.
We have also developed the TARGET Instant Payment Settlement (TIPS) service, which enables the settlement of instant payments across the euro area. Instant payments are further supported by a payment scheme – the SEPA Instant Credit Transfer scheme – that provides harmonised rules, standards and protocols. Moreover, EU legislation has made it mandatory for banks to allow their customers to send and receive instant payment at low cost.
A key feature of TIPS is that it’s a multi-currency platform. Taking advantage of this, Sweden and Denmark are using TIPS to facilitate fast payments in their respective currencies.[11] Norway will do the same as of 2028.[12] Furthermore, we are implementing a cross-currency settlement service that will allow instant payments initiated in one TIPS currency to be settled in another. Initially, this service will support cross-currency payments between the euro area, Sweden and Denmark.[13]
Within Europe, we are also supporting the Western Balkans in developing a regional fast payment system.[14] As a service provider for TIPS, the Banca d’Italia is collaborating with the central banks of Albania, Bosnia and Herzegovina, Kosovo and Montenegro to develop an instant, multi-currency payment system based on TIPS software. North Macedonia may join the initiative at a later stage.[15] The new platform will facilitate instant payments both within each participating country and across borders.
Going global: interlinking fast payment systems
This shows the potential for strengthening regional integration in payments. However, let me be clear: regional integration must not come at the expense of global connectivity. It should not be used as a means to sever ties with global payment networks.
Our approach is that regional and global integration can go hand in hand through the interlinking of fast payment systems across regions and countries. Today, over 100 jurisdictions worldwide have implemented their own fast payment systems.[16] Interlinking these systems has the potential to address inefficiencies and build lasting connections that are rooted in trade openness and balanced relationships between partners.
This approach offers several advantages. It would reduce costs, increase the speed and transparency of cross-border payments and shorten transaction chains. It would also enable payment service providers to conduct transactions without having to use multiple payment systems or a long chain of correspondent banks. Moreover, it would ensure that the platform for connecting and converting currencies is managed as a public good, thus avoiding closed loops and discriminatory pricing. Accordingly, the G20 Roadmap for Enhancing Cross-border Payments has identified interlinking as a key strategy for enhancing cross-border payments.[17] In this respect, the excellent work the Committee on Payments and Market Infrastructures (CPMI) is carrying out on payee verification could make a significant difference.
Last October, the ECB’s Governing Council decided to take concrete steps towards interlinking TIPS with other fast payment systems to improve cross-border payments globally.[18]
We will implement a cross-currency settlement service for the exchange of cross-border payments between TIPS and other fast payment systems worldwide.[19] This will allow us to explore interlinking TIPS with fast payment systems that have a compatible scheme, are interested in being involved and fully comply with the standards set by the Financial Action Task Force for combating money laundering and terrorist financing.
In addition, we are exploring the possibility of creating bilateral and multilateral links with other fast payment systems.
One possibility under consideration is connecting TIPS to a multilateral network of instant payment systems through Project Nexus, led by the BIS.[20] By joining Nexus, TIPS could serve as a hub for processing instant cross-border payments to and from the euro area and other countries that use TIPS.[21]
We are also currently assessing the feasibility of creating a bilateral link between TIPS and India’s Unified Payments Interface[22], which handles the highest volume of instant payment transactions in the world[23].
Interlinking fast payment systems has the potential to solve the shortcomings related to the messaging leg of cross-border transactions, by facilitating the message that the payer’s bank in country A sends to the payee’s bank in country B about the incoming transfer of funds. This would already go a long way towards improving the efficiency of cross-border payments.
However, what interlinking does not fully resolve is the settlement leg, through which money moves from the payer’s to the payee’s account. This still requires a bank that has access to both payment systems that are interlinked, or a credit relationship between a bank in country A and a bank in country B. This is particularly challenging, given the increasing retrenchment of the correspondent banking model.
In this context, we need to collectively exercise our creativity. I do not envisage a solution that could cover all possible corridors and use cases: there may be scope for tokenised forms of money, as well as a revival of the correspondent banking model, especially if we can reduce the associated risks.
In the realm of sovereign money, jurisdictions could agree to use their respective central bank digital currencies as settlement assets. In this respect, the current draft legislation on the digital euro provides for an approach that respects the sovereignty of non-euro area countries and mitigates potential risks for them. It does so by opening the possibility for residents of a partner country to use the digital euro, subject to an agreement with that country, complemented by an arrangement between the ECB and the respective central bank.[24]
Appropriate safeguards – such as individual holding limits for users – would ensure that the digital euro is used primarily as a means of payment and does not fuel currency substitution. Furthermore, the digital euro’s design would include multi-currency functionality, similar to that of TIPS. In practice, this means that non-euro area countries could use the digital euro infrastructure to offer their own digital currencies, thereby facilitating transactions across these currencies.
Conclusion
Let me conclude.
We find ourselves at a pivotal moment for cross-border payments. If we want to make decisive progress and increase their efficiency, we need to work together to develop new solutions. We must, however, be aware of the risks that some of the alternatives on offer may pose.
I would like to thank the BIS – and in particular the CPMI – for the active role they play in this area, not least by bringing us all together today, with representatives from A (Angola) to Z (Zambia). Each of us brings different needs and circumstances to the table. This raises two fundamental questions. What do we have in common? And what principles can guide our collective efforts?
First, we must harness responsible innovation to solve persistent challenges while mitigating the risks I have noted today. Central banks – by ensuring the safety and integrity of payment systems – play an important role in this regard. And by interlinking fast payment systems and exploring the use of central bank digital currencies, we can address settlement inefficiencies while safeguarding monetary sovereignty and financial stability.
Second, regional solutions can serve as a foundation for global progress. I have argued that regional payment integration can be an important part of the solution – provided it remains open to, and actively facilitates, interlinking at a global level. We firmly believe that this open, multi-currency interlinking approach can lay the groundwork for cheaper, faster and more transparent cross-border payments – without compromising the integrity, stability or sovereignty of the countries involved. By designing payment systems that are open, interoperable and multi-currency ready, we can ensure that regional initiatives contribute to global integration rather than fragmentation.
Finally, collaboration is central to our collective success. Forums such as the CPMI community of practice, as well as today’s workshop, provide valuable opportunities for sharing knowledge and experiences. We will continue to find ways to work together to build resilient, inclusive and interconnected payment infrastructures that meet the needs of our people and economies. And we at the ECB remain committed to sharing our expertise and collaborating wherever we can add value.
Thank you for your attention.
