The changing colour of money - new directions for payment systems, currencies

TECHNOLOGY continuously shapes monetary and financial structures through its influence on the nature of money and the workings of banking and payment systems. This process of evolution through innovation is now accelerating at an unprecedented pace.

Information technology is permeating every corner of financial services, whether through the entry of so-called "big tech" firms or the use of mobile payment applications, disrupting existing business models and challenging traditional financial infrastructures.

These game-changing developments require central banks to step up and play a more significant part in improving payment security and efficiency. The Bank for International Settlements (BIS) is taking a leading role in driving these efforts, spearheaded by the establishment of the BIS Innovation Hub across three international locations with a mandate to develop insights into critical financial technology trends, to engineer public goods to enhance the global financial system and to act as a focal point on change for central banks.