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.
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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
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
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.
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.
“Global solidarity benefits us to everyone”: Spain pleads for the financing of development
For decades, helping the least developed countries to develop was considered beneficial for the international community as a whole, as well as the duty of countries with more resources.
However, this philosophy is called into question by certain rich countries, which have decided to reduce or even end the financing of projects and initiatives designed to support the poorest countries in the world in the world in their attempts to improve the living and well-being of their citizens.
Before the fourth International Conference on Development Financingwhich takes place in Seville, Spain, between June 30 and July 3, Ms. Granados told Antonio Gonzalez of the UN News that, despite uncertainty, many rich countries, including Spain, always believe in the need to finance and solidarity between nations.
This interview has been changed for more clarity and length
UN News: Is development financing as we know it?
The Spanish Secretary of State for International Cooperation, Eva Granados.
Eva Granados: Cooperation in global development and solidarity are not only beneficial for everyone, but also a political and moral duty.
It is true that, in the past year, there has been a reduction in official development aid, but this is not the case for all countries. Spain, for example, has increased its contribution to official development aid by 12%.
Philosophy behind development is certainly questioned in certain circles, but it is the same type of denial that calls into question the need for policies calling for equality between men and women, or the reality of the climate crisis. There are a lot of people who make a lot of noise, but we are much more who believe in global solidarity. We must explain and explain why this solidarity and international cooperation are important.
I believe that all the peoples of the world have a duty towards each other, and we must counter these stories; Climate change clearly affects us all and solidarity between the sexes is beneficial for the whole of society.
In 2015, during a conference in Addis Ababa [which laid the groundwork for a landmark international agreement on financing]We talked about debt problems, international taxation, trade and research. It is the work of those of us who are involved in cooperation and development of development to develop this program.
UN news: why is it in the interest of richer countries like Spain to spend money on international development?
Eva Granados: In the case of Spain, international cooperation and global solidarity are part of our social contract. Cooperation and peaceful relations between the peoples of the world are included in our Constitution and the focus of a 0.7% contribution of our gross national income to international cooperation is registered in law.
And that benefits our country. For example, during COVID 19 Pandemic, it was clear that, although the challenges were national, the solutions were global. Another example is climate change. The Mediterranean is strongly affected, both on the European and African side. We must cooperate and work in a coordinated manner, train partnerships and create global policies.
UN News: There is an annual gap of 4 Billions of euros in the funding necessary for development and what is currently collected. Can this gap be filled?
Eva Granados: The financing gap is important, but relatively speaking, 4 euros of euros still represents only one percent of the financial transactions which take place each year. I think we have a lot of scenarios where it can be made.
If all donor countries contributed to 0.7% of gross national income, we would barely meet 10% of funding for development. This means that we have to do our best to attract investments and work with the private sector.
We must also help create global tax systems that distribute wealth and end the situation in which two out of five citizens live in countries that spend more for debt service than for education or health services. It is unacceptable that the richest and richest on the planet contribute so little to international development. Super rich people and large multinationals should do more.
UN News: What results do you want to get out of this conference?
Eva Granados: These are uncertain times, but Seville is a ray of light for global solidarity. The countries represented at the conference report that they believe in multilateralism.
The objective is to obtain more and better resources for sustainable development. We have to combine ambition with action. Just like in Addis Ababa, where we were able to reach an agreement on a large number of questions, Seville is the time to put concrete questions on the table and to bring together the political will of the world leaders to conclude agreements.
Seville is also a good time for us to define this point of view from the point of view of women. It is important that, in all the chapters of the document we discuss, the needs of women are at the forefront.
And it is important that the final document includes a follow -up mechanism, so that countries can be held responsible on an annual basis for the commitments we reach, and the commitment of all Member States to contribute to official development aid.
Originally published at Almouwatin.com
Syria: UN commission hails recent action to address past violations
Paulo Sérgio Pinheiro highlighted the establishment of the National Transitional Authority and the National Authority for Missing Persons which are expected to help reveal the fate of the more than 100,000 Syrians estimated to have been forcibly disappeared or gone missing.
They are also expected to expose the truth about systematic violations like arbitrary detention, torture and ill-treatment, and about widespread attacks which killed hundreds of thousands of civilians and maimed millions during hostilities.
Syria continues along the path to transition following the overthrow of the Assad regime last December.
Wave of retaliatory attacks
Mr. Pinheiro said the security vacuum left after the dismissal of the armed forces and security services, together with a lack of clarity on the new framework for justice, contributed to an atmosphere where victims of past crimes and violations attempted to take the law into their own hands and settle scores.
Retaliatory attacks that took place in coastal areas in March, and on a smaller scale in other parts of the country, were “in part a response to five decades of systematic crimes perpetrated by security forces with impunity which affected all Syrians,” he said.
“More recently, sectarian fault lines have also been fuelled by widespread hate speech and incitement against Alawis, off and online, including posts with false information reportedly often originating from abroad.”
Eyewitness accounts
The Commission conducted its latest visit to Syria last week and travelled to several locations on the coast where killings and looting had occurred. The team met with several civil and security authorities, as well as eyewitnesses and victims’ families.
“First-hand accounts by survivors of these events…revealed in detail how residential areas were raided by large groups of armed men, many of them members of factions now affiliated with the State. They told us how the assailants detained, ill-treated and executed Alawis,” he said.
He acknowledged the interim authorities’ establishment of a National Inquiry to investigate the violations as well as an additional High-Level Committee to Maintain Civil Peace. Furthermore, dozens of alleged perpetrators have been arrested.
“Protection of civilians is essential to prevent further violations and crimes,” he said.
“We welcome the commitment of President (Ahmed) al-Sharaa to hold those responsible accountable to restore confidence for State institutions amongst the affected communities.”
He also pointed to a deadly attack on a Greek Orthodox church in Damascus last Sunday, saying the authorities must ensure the protection of places of worship and threatened communities, and perpetrators and enablers must be held accountable.
Foreign intervention
Mr. Pinheiro told the Council that “the Syrian conflict has had no shortage of internal challenges and grievances, many of which were made worse by foreign interventions.”
In recent weeks, Israel has carried out a wave of airstrikes in and around Damascus, including near the presidential palace. Military bases and weapons depots in Daraa, Hama, Tartous and Latakia have also been targeted as part of its sustained military campaign in Syria. Several civilians were killed.
Civilian casualties were also reported in the context of Israeli operations in the buffer zone in Quneitra and southwestern Daraa monitored by the UN Disengagement Observer Force (UNDOF)
“These actions raise serious concerns of violations of international human rights and humanitarian law as UN Secretary-General (António) Guterres further stated recently,” he said.
Millions in need
Mr. Pinheiro reported that more than two million Syrians have returned home since December, including nearly 600,000 from neighbouring countries and just under 1.5 million internally displaced persons (IDPs).
“For many of the over seven million Syrians who remain displaced, massive property-related challenges will need to be tackled in the wake of industrial-scale destruction, pillage and confiscation of homes and lands,” he said.
Moreover, he noted that “despite the recent encouraging steps towards lifting of sectoral sanctions and opening the country to new investments, nearly 16.5 million Syrians remain in need of humanitarian assistance.” Among them are nearly three million people facing severe food insecurity.
Mr. Pinheiro concluded his remarks, saying “the interim authorities’ repeated commitments to protect the rights of everyone and all communities in Syria without discrimination of any kind are encouraging” and “should be met with the necessary support from the international community.”
About the Commission
The Independent International Commission of Inquiry on the Syrian Arab Republic was by the Human Rights Council in August 2011 with a mandate to investigate all alleged violations of international human rights law since March 2011.
The members are Mr. Pinheiro and Commissioners Hanny Megally and Lynn Welchman.
They are not UN staff and do not receive any payment for their work.
Myanmar human rights crisis deepens as aid collapses, attacks intensify
In a stark briefing to the Human Rights Council in Geneva, UN High Commissioner for Human Rights Volker Türk described a country gripped by war, repression and deepening suffering.
Since the military coup in February 2021, nearly 6,800 civilians have been killed and over 22,000 remain arbitrarily detained, he said. Humanitarian needs have soared, with nearly 22 million people in need of assistance and more than 3.5 million displaced by conflict.
“The report I am presenting today is about the people of Myanmar and their aspirations for a better future,” Mr. Türk said.
“Despite massive challenges, people from across society are striving to build a peaceful, sustainable, democratic and diverse Myanmar, grounded in human rights.”
A crisis worsened
However, conditions on the ground have only worsened.
Following a 28 March earthquake that killed nearly 4,000 people and left six million in urgent need, the military intensified attacks instead of facilitating relief, Mr. Türk said.
The UN human rights office, OHCHR, documented more than 600 military strikes since the quake – 94 per cent of them occurring during supposed ceasefires – with schools, religious sites and other protected locations frequently targeted.
Situation in Rakhine
The situation in Rakhine state remains particularly dire, with civilians – the minority Muslim Rohingya in particular – caught between the Myanmar military and the Arakan Army, an ethnic armed group. In addition, the military’s ongoing obstruction of humanitarian access has worsened an already acute crisis.
Throughout the country, economic collapse and the breakdown of public institutions have compounded the suffering.
Nearly four in five people now live below or just above the poverty line and an estimated 1.3 million have fled the country – many undertaking perilous journeys by land and sea. So far in 2025, nearly one in five people attempting sea crossings in the region have been reported dead or missing.
End violence, ensure accountability
The High Commissioner’s report outlined four key pathways to lay the groundwork for a transition toward a peaceful and democratic Myanmar: justice and accountability, democratic governance; economic reform to serve the people, and sustained international engagement.
Mr. Türk stressed that accountability must begin with the release of all political prisoners and prosecution of those responsible for grave human rights violations.
“It is imperative for the military to immediately end the violence, allow unhindered humanitarian access and release all arbitrarily detained people,” he said.
“Amid the turmoil, planning for a future with human rights front and centre offers people a sense of hope. We owe it to the people of Myanmar to make that hope a reality.”
Millions have lost their homes and livelihoods due to the earthquakes that struck Myanmar in late March.
Independent expert’s alarm
Tom Andrews, the UN Special Rapporteur on the situation in Myanmar, echoed the High Commissioner’s warnings, raising alarm over a collapse in international humanitarian support and the military’s repression.
“The junta has chosen to use aid as a weapon,” he told the Council.
“I have spoken with humanitarian workers physically blocked at checkpoints and received reports of earthquake survivors evicted from shelters with no place to go.”
Mr. Andrews, who has been appointed and mandated by the Human Rights Council and is not a UN staff member – also warned that drastic cuts in international funding have already had severe consequences.
As of 27 June, the $1.14 billion comprehensive humanitarian response plan for the country is only 12 percent funded and the $275 million addendum for the earthquake response is about 37 per cent.
At a time when the people of Myanmar need an enhanced level of support from the international community, they are getting the opposite, Mr. Andrews said, warning that the cost in human lives and human suffering will soon very likely get “significantly worse.”
“This dangerous trend begs the question – do human rights matter?” he asked.
“Because if human rights matter, if saving the lives of children in Myanmar matters, why are so many governments reluctant to invest even a modest amount of resources to save lives?”
