VIII Fintech Forum Meeting

From March 11 to 12, 2025, the Center for Latin American Monetary Studies (CEMLA), in collaboration with the Central Reserve Bank of Peru and the Bank of Spain coordinated the VIII Fintech Forum Meeting, which, took place in Lima, Perú in in a face-to-face format.

The event commenced with welcoming remarks from Dr. Manuel Ramos Francia, Director General of CEMLA; Dr. Juan Ayuso Huertas, Director General of Operations, Markets, and Payment Systems at the Banco de España; and Dr. Paul Gonzalo Castillo Bardález, General Manager of the Banco Central de Reserva del Perú.

This was followed by a keynote presentation by Dr. Carlos Coello-Coello (CINVESTAV-IPN), who provided a historical overview of Artificial Intelligence (AI), covering developments from the early perceptron model to the latest advancements in generative AI. He offered a concise explanation of how basic neural networks operate and highlighted major challenges facing AI today, such as the lack of explainability, the issue of hallucinations, reliance on large datasets, and concerns about AI becoming a potential threat. He concluded by warning that overconfidence in AI could be dangerous—though, if used properly, it can be a highly powerful tool.

The first session focused on cybersecurity. The discussion began with the fundamentals of encryption algorithms and examined the potential impact of quantum computing on these systems, noting an estimated 10% probability that stable quantum computers may emerge within the next 20 years. The session emphasized the importance of proactively adopting secure coding standards to avoid future vulnerabilities and highlighted the need for incentives to prevent delays in implementing preventive measures.

The second session centered on Open Banking and Finance. It underscored the importance of robust data protection legislation and the growing public demand for an open finance ecosystem. Topics included the regulation of financial transactions and the promotion of a healthy fintech environment, with Brazil’s transition from open banking to open finance serving as a key example. Integration challenges were also addressed, particularly those stemming from the varying capacities of financial institutions.

The third session addressed tokenization, starting with one of the key challenges in adopting Distributed Ledger Technology (DLT): the choice between developing a proprietary or private platform and the degree of interoperability each enables. The session continued with an analysis of the advantages, disadvantages, and institutional recommendations surrounding the issuance of Central Bank Digital Currencies (CBDCs). Various methods for conducting token-based transactions were explored and compared to current payment systems such as Pix.

The final session of the first day focused on the use of generative AI. Projects developed by the Deutsche Bundesbank were showcased, including tools for sustainability reporting and a geotracker for locating relevant institutions. Two major areas of opportunity were identified: the personalization of customer service and the automation of processes, including enhancements to institutional security. The session also addressed the risks of generative AI, the importance of responsible use, and the growing influence of open AI models, which require careful oversight.

The second day began with a keynote by Eugene Goh, Deputy Director at the Monetary Authority of Singapore, who discussed the transformation of small and medium-sized enterprises’ (SMEs) access to financial services and markets. He presented several international case studies, focusing on how Singapore has adapted its regulatory framework to foster SME growth and expand economic opportunities.

The second keynote, delivered by Arnault Lee, Investments Strategy Lead at the Global Finance and Technology Network and titled Innovation and Regulation in the Global Finance and Technology Network, covered the modernization of financial systems, the digitalization of the global economy, and ongoing efforts to ensure a responsible and inclusive transition to a modern economic system.

A roundtable discussion followed, addressing key aspects of fintech regulation. Topics included the evolution of fintech ecosystems, regulatory frameworks, the role of supervisors and regulators, regulatory sandboxes, digitalization and financial inclusion, the regulation of electronic money issuers, digital operations, cybersecurity, and the broader fintech regulatory agenda.

The final session, titled Instant Payments and Central Bank Digital Currency (CBDC), began by noting that only three countries—The Bahamas, Jamaica, and Nigeria—have currently implemented a CBDC. The session explored the differences between Fast Payment Systems (FPS) and CBDCs and how each has been adopted across jurisdictions. It was emphasized that if a country implements both FPS and CBDC systems, interoperability must be mandatory. While the technical infrastructure is sufficiently advanced to support such initiatives, carefully crafted regulatory frameworks are essential for effective implementation.

To close the event, progress reports were presented by the Fintech Forum’s working groups, along with the documents they produced and future opportunities for collaboration and development.