Core Viewpoint - Bosnia and Herzegovina is progressing towards joining the Single Euro Payments Area (SEPA) by implementing a new Payment Services Law and cash transfer regulations, which are currently in parliamentary procedure [1] Group 1: Legislative Developments - The new Payment Services Law and cash transfer regulations are being developed to facilitate Bosnia's entry into SEPA [1] - The cash transfer regulations require coordination on the rules for the import of investment gold [1] Group 2: Economic Implications - Joining SEPA is expected to send a positive signal to investors, reduce the cost of euro payments for businesses, and help regulate the flow of remittances that are currently in the gray market [1] - The Central Bank of Bosnia has submitted a pre-application to join SEPA by December 2025, with a formal application expected in the first quarter of 2026 [1] Group 3: Regional Context - Bosnia and Herzegovina is currently the only country in the region that has not yet joined the SEPA, which covers 41 countries including EU member states [1]

Group 1 - The number of internet and mobile banking users in Bosnia has exceeded 1.77 million, with digital transaction volume growing over 35% in the past two years, indicating increasing public acceptance and trust in online financial services [1] - There are 22 banks in Bosnia providing electronic banking services, covering a total of 1.77 million entities, including 136,100 legal entities and 1,634,100 natural persons [1] - The Central Bank of Bosnia views the development of online and mobile banking as a crucial part of modernizing the payment system and digitizing the financial sector, with plans to implement an instant payment system for faster and more efficient electronic transactions [1] Group 2 - A strategic focus for the Central Bank of Bosnia is to integrate Bosnia into the SEPA (Single Euro Payments Area), which involves aligning legislative frameworks with European standards and training relevant participants on SEPA rules [2] - Currently, 44% of payment instructions are initiated electronically, while 56% are still conducted physically, despite electronic transactions accounting for 55% of total transaction value [2] - The Central Bank will continue to drive the development of the digital financial ecosystem, focusing on enhancing payment infrastructure, aligning with European standards, and promoting financial and digital literacy [2]