BIS central bankers’ speeches  3  Norges Bank’s task is to promote an efficient and robust financial infrastructure. New decentralised technology offers the potential to increase the efficiency of our infrastructure. It is still early days, and we do not know what the outcome will be. But it is still worthwhile to take a closer look at the possibilities. Norges Bank will start work on assessing safety and efficiency, and other consequences of such solutions. We want dialogue with relevant operators in Norway and abroad. Both the authorities and market participants should assess the need for standardisation and regulation. The timing for introducing such measures must not impede development in an early phase. I look forward to an active debate. Many of the stakeholders participating in that debate are probably here today. Safety and contingency arrangements Technological advances also have implications for the security and contingency arrangements for our systems, which we as a nation must take seriously. Developments occur rapidly. Operators want to market new solutions to strengthen their competitive position, which is natural. But payment solutions do not function efficiently if they are not secure and if there is little customer confidence in the solutions. The payment chain includes many stages and they must all function. A chain is not stronger than its weakest link. Safety and operational stability must be adequately tested. Sound risk analyses are crucial. They provide a guide to risk-mitigation. Internet solutions have led to new criminal activities. Resource use to combat cybercrime is steadily increasing.

15 [21]  References Adrian, Tobias and Nellie Liang (2018), “Monetary policy, financial conditions, and financial stability”, International Journal of Central Banking 14(1), pp. 73-131. Armelius, Hanna, Paola Boel, Carl Andreas Claussen and Marianne Nessén (2018), “The e-krona and the macroeconomy”, Economic Review 2018:3, Sveriges Riksbank. Ball, Laurence M. (2014), “The Case for a Long-Run Inflation Target of Four Percent”, Working Paper WP/14/92, IMF. Bank of Canada (2016), “Renewal of the Inflation-Control Target”, Background information”, October 2016, Bank of Canada. Blanchard, Olivier, Giovanni Dell’Ariccia and Paolo Mauro (2013), “Rethinking Macro Policy II: Getting Granular”, IMF Staff Discussion Note 13/03, International Monetary Fund. Blanchard, Olivier and Lawrence H. Summers (2019), “Introduction: Rethinking stabilization policy: Evolution or revolution?”, in Blanchard and Summers (ed. ), Evolution or revolution – Rethinking macroeconomic policy after the Great Recession, The MIT Press. Brainard, Lael (2017), “Rethinking monetary policy in a new normal”, remarks at the Panel on Monetary Policy “Rethinking Macroeconomic Policy”, a conference sponsored by the Peterson Institute for International Economics, Washington D.C. Caballero, Ricardo J. and Alp Simsek (2019), “Prudential monetary policy”, NBER Working Paper No. 25977. Federal Reserve Bank of St. Louis (2019), “Bullard Discusses the Fed’s Monetary Policy Framework Review”, Timely Topics Podcasts and Seminars, August 14 2019, https://www.stlouisfed.org/timely-topics/bullard-discusses-monetary-policyframework-review Filardo, Andrew and Phurichai Rungcharoenkitkul (2016), “A quantitative case for leaning against the wind”, BIS Working Papers No. 594. Gerdrup, Karsten R., Frank Hansen, Tord Krogh and Junior Maih (2017), “Leaning against the wind when credit bites back”, International Journal of Central Banking 13(3), pp. 287-320.