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BIS - Innovation Hub for central banks

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BIS to set up Innovation Hub for central banks

Press release  |  30 June 2019

 

The Board of the Bank for International Settlements (BIS) today approved the establishment of a BIS Innovation Hub to foster international collaboration on innovative financial technology within the central banking community complementing the already well established cooperation within the existing committees.

 

Quote

Mark Carney, Chair of the Economic Consultative Committee, welcomed the move. "There is a new economy emerging driven by changes in technology, demographics and the environment. While the private sector is driving these innovations, their efforts will be more effective if the hard and soft infrastructure of the global financial system support this innovation, promote resilience and level the playing field on which to compete. Central banks have a major role to play. The BIS Innovation Hub will foster collaboration between central banks and, by extension, help the private sector to fully realise these major opportunities."

https://www.bis.org/press/p190630a.htm

 

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Enable, Empower, Ensure: A New Finance for the New Economy

Mark Carney, Governor of the Bank of England

20 June 2019

 

New Finance - New Bank That’s why a new finance demands a new Bank of England. Our strategy is to enable innovation and to empower competition, while ensuring monetary and financial stability. Our levers are the hard and soft infrastructure that we control:

  • Our hard infrastructure, such as access to our balance sheet and access to our Real-Time Gross Settlement (RTGS) system, the heart of the UK payments system.
  • And our soft infrastructure, such as our rules, regulations and standards.

https://www.bis.org/review/r190627a.pdf

 

Below is the speech (video) of Mark Carney at the Innovate Finance Global Summit 2019 in London,

all the info are in my other post below

 

 

Edited by JannaOneTrick

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Singapore chosen by Bank for International Settlements for innovation hub centre

SINGAPORE - The Bank for International Settlements (BIS), the global bank for central banks, will establish an innovation hub centre in Singapore in a move that Singapore's central bank said reflects the Republic's position as a leading international fintech centre.

BIS's Innovation Hub will span multiple locations. It will first set up centres in Basel, Switzerland, and Hong Kong, making use of existing BIS facilities there. Singapore will host its third hub centre, also as part of the plan's first phase.

Announcing this on Sunday (June 30), BIS said the role of the hub will be to identify and develop in-depth insights into critical trends in technology affecting central banking.

It will also develop public goods in the technology space geared towards improving the functioning of the global financial system and serve as a focal point for a network of central bank experts on innovation.

The move is the latest of recent fintech developments here. On Friday, Senior Minister Tharman Shanmugaratnam announced Singapore will issue up to five new digital bank licences, paving the way for non-bank players to break into the local financial service scene.

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Personal observations:

1. The doors are being opened to non-bank entities to participate in the Central Bank initatives - this is positive news as it means that the traditional incumbents (big correspondent banks such as Citi, et al) will see their monopoly diminish.

2. These three innovation hubs are only part of the BIS plan's first phase. This likely means that there will be future waves of innovation hubs being established worldwide. Again, positive news pointing to how the new digital payments "network" will inevitably supplant the conventional systems embodied by SWIFT and the like.

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