Page 76 - ITU-T Focus Group Digital Financial Services – Interoperability

ITU-T Focus Group Digital Financial Services
Interoperability

fact, even when international payment system interoperability initiatives are led by the private sector, the
close involvement of all relevant public authorities is essential to bring a clear systemic risk perspective into
the management of the related international interoperability agreements, and to ensure that internationally
interoperable PSIs take the necessary measures in order to make them as mutually compatible as needed,
especially where critical differences in their risk management standards and practices might raise risks of shock
transmission across PSIs (with cross-border implications).

38. The oversight principles for international payment system interoperability are the following:

Institutional basis
Principle 1: The public authorities and private sector stakeholders who consider establishing an international
interoperability agreement should define a clear strategic vision articulating the purpose, scope, and form of
the agreement, as well as its risks and oversight implications.
Key issues

1.1 The strategic vision for an international interoperability agreement should be incorporated within the
national payment system policies of the countries where participating PSIs are located, with an emphasis
on crystallizing their support to and participation in the agreement.

1.2 The public authorities and private sector stakeholders should also make a preliminary assessment of the
risks associated with the agreement and the related oversight implications and requirements, and should
open discussions on the appropriate oversight arrangements.
39. Establishing an international interoperability agreement among national PSIs requires a clear vision and
a robust rationale. The public authorities and private sector stakeholders should prepare a general proposal
expressing the vision of the initiative. The proposed vision should provide a high-level overview of comparable
existing and projected national and international interoperability agreements, and include a preliminary and
high-level (qualitative) benefit-cost analysis of the initiative for the international community, the participating
countries, and the stakeholder groups involved. The general proposal supporting the agreement should serve
essentially as a "request for information" for participating countries and key stakeholders and should not be
intended to be an elaborated project plan or project development document. Instead, once finalized, it should
provide a high-level framework for the subsequent planning and development stages.
40. An international interoperability agreement would benefit from government support of the participating
countries. While an international interoperability agreement could be established at the initiative of private
sector stakeholders and might in principle require no government involvement, the governments of the
participating countries should, at a minimum, offer their support and facilitate the steps to the agreement,
its deployment, and operation. If the agreement were a component of a broader international economic
integration program, there should also be government support and facilitation. In such event, all national
public authorities with relevant responsibilities over the agreement should be empowered, have the resources,
and commit to address its related legal, oversight, and regulatory aspects. Also, they should be prepared to
mutually cooperate for the success of the initiative and to ensure effective oversight of the linked or shared
PSIs once the agreement is deployed and becomes operational (see below).
Principle 2: The public authorities and private sector stakeholders involved in an international interoperability
agreement should establish the leadership that will secure adequate financial and human resource support to
the agreement, ensure its implementation, and exercise effective oversight of the linked or shared PFIs.
Key issues

2.1 The public authorities and private sector stakeholders should devise appropriate organizational
arrangements, including establishing a steering committee to lead the initiative and creating and
empowering an effective implementation management team to carry out the planning and implementation
stages of the agreement.

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