The city of Zug has recently even launched a pilot project allowing certain public services to be paid for using a crypto-currency. But even those of us who prefer more traditional payment methods can benefit from many innovations in Switzerland. For instance, cash can now be withdrawn from ATMs without a bank card – simply by using a smartphone. Like Switzerland, central banks are associated with stability and continuity. And yet, since the financial crisis, they too have had to adopt ever more inventive policies to shield their respective economies from serious harm. The Swiss National Bank has likewise had to mobilise its innovative resources. We have developed and deployed new monetary policy instruments, which have enabled us to carry out our mandate as fully as possible. When it comes to implementing monetary policy, financial market infrastructures are vital. In Switzerland, these infrastructures are run by SIX Group and the SNB is actively involved in shaping the strategic direction of certain functions. Without safe and efficient infrastructures we would be unable to fulfil our mandate. This fact alone explains our keen interest in ensuring their smooth operation. But our interest goes beyond monetary policy implementation. The infrastructures also play a major role in enabling the SNB to perform other statutory duties, such as facilitating and securing the operation of cashless payment systems and contributing to the stability of the financial system. As mentioned, the financial sector is experiencing a surge of innovation.

11 New FINMA-regulated participants establishing themselves in retail payments could also seek access to the SIC system in the future. As these examples show, the SIC system is moving with the times. SIC is systemically important and critical to the fulfilment of our mandate; we therefore support innovations which will improve its efficiency without compromising its safety. Conclusion Ladies and gentlemen, financial technology is evolving rapidly and calling many existing structures into question. Despite this, it is important to bear in mind that the fundamental needs of companies and households that are met by financial services remain largely unchanged. The usefulness and success of new technologies will hinge on whether they can meet these basic needs more cheaply, more securely and in a more customer-friendly manner than existing solutions. The SNB is neutral vis-à-vis the technologies underpinning financial market infrastructures. It assesses innovations in terms of their implications for the fulfilment of its statutory mandate. Our focus is on safety and efficiency, and we analyse the effects – and side-effects – of innovations closely through this lens. For this analysis, dialogue between market participants, regulators and central banks is essential. This is especially true in view of current technological changes, which make walking the line between stability and innovation particularly challenging. This exchange of views with practitioners helps us to correctly assess the uses and risks of new technologies. Such discussions are critical if we are to exploit the technologies of the future at the right time and under the right conditions.