As growth prospects have weakened we have cut the repo rate over the last 12 months in order to attain the inflation target and support economic activity. However, a lower repo rate also increases the risk associated with household indebtedness. The decisions to cut the repo-rate have therefore not been self-evident. Low repo rate in Sweden over the last 12 months In connection with the financial crisis the repo rate was lowered all the way to 0.25 per cent, where it remained for almost a year - from mid-2009 to mid-2010. During the strong recovery that followed the financial crisis we moved towards a normalisation of monetary policy, and during the autumn of 2011 the repo rate reached 2 per cent. However, the financial crisis then became a debt crisis in Europe, which has undermined economic prospects once again. We therefore had to call a halt to the normalisation process. This year, the Riksbank has instead cut the repo rate in a number of stages to stimulate the Swedish economy and prevent the rate of inflation becoming too low. Historically speaking, the repo rate is now very low (see Figure 1). Let me now go back a little and describe how we ended up in the position we are now in with regard to monetary policy. I also intend to take up some of the important lessons learned from the international financial and debt crisis of recent years. The financial crisis became a debt crisis in Europe… The global financial crisis began about four years ago.
We are collaborating with the Bank of Thailand to explore the potential of a blockchain-based Central Bank Digital Currency (CBDC) network, with a view towards more efficient crossborder payments. 35. We have already developed a Proof-of-Concept prototype that enables real-time crossborder funds transfers on a peer-to-peer basis. In the next phase, we are exploring business use cases such as cross-border trade settlement and capital market transactions. We will soon bring banks and large corporates into trials to test the network using actual trade transactions. 36. Looking into the future, further studies will be undertaken to extend the architecture to a 3/4  BIS central bankers' speeches  multi-CBDC platform. Leveraging the wholesale-CBDCs on this platform, e-wallet service providers may be able to offer retail use cases such as remittances and cross-border payments for travelers within the region. We hope this initiative can provide the market with efficient, cost-effective, and transparent cross-border payments services. 37. Together, the CDI and CBDC initiatives show the HKMA’s commitment to delivering on our market development mandate. They are live examples of our focus on applying technology to achieve better banking. We believe they hold great potential for bank customers in Hong Kong – and for innovators like you. Concluding remarks 38. I said earlier that the principles of service, trust, and capital management are timeless and core to good banking. I hope that what you will take away from my remarks today is that the HKMA is committed to creating a healthy fintech ecosystem to enhance these principles.