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1 Global challenges require global solutions and collaborations
Throughout my career, including my time at the World Bank and the International Monetary Fund, I have learned that collaboration between people from different backgrounds and expertise is crucial to finding successful solutions to the challenges of our time. This is especially true when addressing global issues such as climate change risks, rapid technological advancements like artificial intelligence or crypto development, and the evolving landscape.
In such an international context, fostering collaboration not only enhances the quality of solutions we develop but also ensures that their implementation is more adaptable and efficient across countries and regions.
As Bundesbank President Joachim Nagel emphasized in his keynote address at this summit, the Innovation Hub of the Bank for International Settlements (BIS) is a prime example of how central banks can pool their expertise and resources to develop solutions for these global challenges.[1]
From my perspective as a member of the Bundesbank Executive Board responsible for research, data and statistics, and risk control, a highly relevant example in this regard is the rapid technological transformation of the financial sector. Crypto-assets and stablecoins are playing an increasingly significant role. To better understand their impact on our mandate, we are intensifying our research activities in the future of finance. In this context, I have high hopes that initiatives like the BIS Innovation Hub’s Atlas project will prove to be valuable tools. Atlas has developed a data platform to analyze the economic relevance of crypto asset markets and decentralized finance. Experiments of this nature can enable entirely new types of analyses to explore the economy underlying crypto assets.
2 Central banks must benefit from a range of outcomes from the BIS Innovation Hub project
Central banks must benefit from a variety of outcomes from BIS Innovation Hub projects both in terms of subject matter and the maturity of solutions. These outcomes include insights from joint stage experimentation and knowledge sharing, the development of central data platforms, and the integration of technical solutions within individual institutions.
I have just described how projects like Atlas could enable us to delve into crypto-economic markets, which is an extremely relevant topic for the Bundesbank Research Center. An example in another area, namely quantum cryptography, is the knowledge gained from joint experimentation between teams from different central banks, as demonstrated in the Project Leap. Project Leap supports the resilience of the financial system against quantum threats through testing and implementing post-quantum cryptography. Meanwhile, the GAIA project showcases how individual institutions can collaborate to address a common challenge: it provides a generative AI-based tool that extracts structured data from unstructured corporate reports such as ESG disclosures to assess climate-related risks.
Together, these projects highlight the tangible benefits of BIS Innovation Hub outcomes and emphasize how innovations can help central banks address current and emerging challenges in very diverse areas.
3 Keys of internal cultural and technical ecosystem for project success
Further strengthening a culture of trust, transparency, and close collaboration within and between organizations is essential for managing innovation. Equally important is enhancing our technical infrastructure to ensure that BIS Innovation Hub solutions can be operated in a robust, scalable, and secure manner.
The exchange of resources, knowledge, and best practices is crucial for leveraging the innovative achievements of individual central banks successfully. Therefore, we support BIS initiatives to build communities and develop common frameworks that enable us to develop solutions while maintaining control over critical infrastructure and data, and benefit from collective progress. The Bundesbank is fully committed to this approach and actively participates in the development and implementation of BIS Innovation Hub projects.
4 Conclusion
The BIS Innovation Hub is a place where new models can be developed to find common solutions to a variety of global challenges that are crucial for central banks. By promoting collaboration, innovation, and knowledge exchange, we can more efficiently address these challenges and shape the future of central bank services.
Footnote:
Globale Herausforderungen erfordern globale Lösungen und Kooperationen, insbesondere wenn es darum geht, Probleme wie die Risiken klimatischer Veränderungen, den schnellen technologischen Fortschritt in Bereichen wie künstliche Intelligenz und kryptische Entwicklung sowie die ständig weiterentwickelnde Landschaft anzugehen. Die Förderung der Zusammenarbeit in einem internationalen Kontext verbessert nicht nur die Qualität der Lösungen, die entwickelt werden, sondern stellt auch sicher, dass ihre Umsetzung zwischen Ländern und Regionen effizienter und anpassungsfähiger ist.
Joachim Nagel, Präsident der Bundesbank, betonte auf einem Gipfel die Bedeutung von Innovation und Zusammenarbeit im Bankensektor. Er hob hervor, wie Zentralbanken ihr Fachwissen und ihre Ressourcen bündeln können, um Lösungen für globale Herausforderungen zu entwickeln. Projekte wie das Innovation Hub der Bank for International Settlements sind Beispiele dafür, wie Zentralbanken zusammenarbeiten können, um die Auswirkungen von Entwicklungen wie Crypto-Assets und Stablecoins zu verstehen und zu bewerten.
Die Ergebnisse solcher Projekte zeigen, wie Zentralbanken von Innovationen profitieren können, um aktuelle und aufkommende Herausforderungen in verschiedenen Bereichen anzugehen. Durch gemeinsame Experimente und den Austausch von Wissen können Zentralbanken ihre Widerstandsfähigkeit gegen Bedrohungen wie Quantenkryptographie stärken und strukturierte Daten für die Bewertung von klimabezogenen Risiken extrahieren.
Die Stärkung einer Kultur des Vertrauens, der Transparenz und der engen Zusammenarbeit innerhalb und zwischen Organisationen ist entscheidend für den Erfolg von Innovationsprojekten. Die Weiterentwicklung der technischen Infrastruktur gewährleistet, dass Lösungen wie die des Innovation Hub der Bank for International Settlements robust, skalierbar und sicher betrieben werden können. Der Austausch von Ressourcen und Best Practices zwischen Zentralbanken ermöglicht es, gemeinsame Herausforderungen anzugehen und von kollektiven Fortschritten zu profitieren.
Zusammenfassend ist das Innovation Hub ein Ort, an dem neue Modelle entwickelt werden können, um globale Herausforderungen zu bewältigen. Durch Zusammenarbeit, Innovation und Wissensaustausch können Zentralbanken effizienter auf die Herausforderungen unserer Zeit reagieren und die Zukunft der Zentralbankendienste gestalten. This is particularly true when we approach global issues, such as the diverse risks of climate change, rapid technological advancements like artificial intelligence or cryptocurrency developments, and the ever-evolving landscape.
In an international context, promoting collaboration not only enhances the quality of solutions we develop, but also ensures that their implementation is more adaptable and efficient across countries and regions.
As President of the Bundesbank, Joachim Nagel emphasized in his keynote at this summit the Innovation Hub of the Bank for International Settlements (BIS). It is an original example of how central banks can pool their expertise and resources to develop solutions for these global challenges.
From my perspective as a member of the Bundesbank Executive Board responsible for the research center, focusing on data, statistics, and risk control, a relevant example is the rapid technological transformation of the financial sector. Crypto-assets and stablecoins are playing an increasingly important role, and to better understand their impact on our mandate, we are intensifying our research activities in the future of finance. Initiatives like the BIS Innovation Hub’s Atlas project are expected to be valuable tools in this regard.
Central banks must benefit from a variety of outcomes from BIS Innovation Hub projects, both in terms of subject matter and solution maturity. These outcomes include information on joint experimentation stages, knowledge exchange, central data platform development, and integration of technical solutions within individual institutions.
The projects highlighted tangible benefits of BIS Innovation Hub results and underscore how innovations can help central banks address current and emerging challenges in diverse areas.
The continued strengthening of a culture of trust, transparency, and close collaboration within and between organizations is essential for successful innovation management. Additionally, enhancing our technical infrastructure is crucial to ensure that BIS Innovation Hub solutions can be operated in a robust, scalable, and secure manner.
The exchange of resources, knowledge, and best practices is crucial for leveraging the innovative achievements of individual central banks successfully. Initiatives like building communities and developing common frameworks allow us to develop solutions, maintain control over critical infrastructure and data, and benefit from collective progress. The Bundesbank is fully committed to this approach and actively participates in the development and implementation of BIS Innovation Hub projects.
In conclusion, the BIS Innovation Hub is a space where new models can be developed to find common solutions to a variety of global challenges that are crucial for central banks. By fostering collaboration, innovation, and knowledge exchange, we can more effectively address these challenges and shape the future of central bank services. Could you please rephrase this sentence?
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