In this case, the potential validators disclose their identity to the entire ecosystem, and they are entrusted this role according to their reputation rather than their economic interest. Not only is this mechanism more efficient and more agile, but it is  7  See, for example, the case of JP Coin. 8  https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/. 3  particularly useful in situations with a low number of participants and where potential validators already enjoy trust. The environment in which crypto-assets operate is also characterised by the presence of a wide range of players9 whose services are essential to provide structure and contribute to the proper functioning of the system. Thus, in addition to crypto-asset issuers, there are platforms that help dematerialise pre-existing assets, infrastructures that facilitate the trading and exchange of crypto-assets, institutions that receive, transfer and/or execute third-party orders, as well as market-makers, code developers, providers of custody, wallet and consultancy services and a long list of others. It is, therefore, a highly complex universe, and this complexity is heightened by the fact that these players are based on a broad range of jurisdictions. In this regard, we should also bear in mind the world of decentralised finance (DeFi), which aims to replicate the dynamics of the provision of financial products and services, but in a decentralised and fully automated environment, thus removing the need for intermediaries. The growing importance of crypto-assets With such a wealth of initiatives, the significant developments experienced by cryptoasset markets in recent times may come as no surprise.

In view of the fact that risks to financial stability could increase further over the short to medium term, the capital surpluses of domestically focused banks are of particular significance. When defining their appetite for risk and their capital plans, the banks should continue to ensure that they are also able to absorb the losses associated with highly unfavourable but possible scenarios in the future. Even under scenarios of this kind, they should be able to perform their core functions for the Swiss economy – in particular, the supply of credit. The SNB will continue to monitor the situation on the Swiss mortgage and real estate markets closely, paying particular attention to developments in the residential investment property segment as well as to banks’ risk-taking in mortgage lending. As hitherto, the SNB will regularly reassess the need to adjust the countercyclical capital buffer. New banknote series: successful launch I would like to finish my presentation today with a few words on the new 50-franc note, which was released on 12 April 2016 as the first denomination in the ninth banknote series. From the SNB’s perspective, the launch of the new banknote series was an all-round success. First, the changeover at bank counters and ATMs went as planned. According to our information, the general public also encountered no major problems when withdrawing or paying in money at cash machines. Second, reactions to the new banknote were predominantly positive among the public and experts alike.