First, the question of strategic independence of incumbents. If incumbents depend on BigTechs for key infrastructure such as cloud computing, if they rely on the same BigTech to 2/4  BIS central bankers' speeches  distribute their products through their platforms and then compete with BigTechs on certain segments, they see their strategic independence challenged in the same way as hotels and retailers did. This process of commoditization of incumbents may lower credit standards to compensate for higher pressure on margin and exacerbate the funding gap because of lower customer stickiness. Second, the question of cyber-risk. With greater interconnections between technologies and the financial system, cyber-risk is moving from an idiosyncratic risk to a potential source of systemic risk. Whether and how to address the type of issues I just mentioned is a challenging task from a regulatory and supervisory standpoint, as it involves an assessment of both the potential risks and benefits brought to the financial system and the economy more largely, which are by nature uncertain. It may give rise to a significant array of alternative courses of actions to  meet two key imperatives: ensure an adequate level of protection for participants and preserve the potential benefits brought by innovation. Let me illustrate this with crypto-assets. Because of incomplete information, a lack of data and the novelty of these monetary and financial objects, four options to tackle them from a public policy standpoint can be considered and have actually been under consideration to drive action: monitoring, isolating, regulating or banning.

Denis Beau: Digital finance, market disruption, and financial stability Speech by Mr Denis Beau, First Deputy Governor of the Bank of France, at the Bank of France Toulouse School of Economics joint conference, Paris, 12 November 2018. * * * Ladies and Gentlemen, I am very pleased to welcome you all today, for the tenth edition of the Banque de France and Toulouse School of Economics joint conference. This year, we have decided to shed light on how digital-based financial innovations are affecting the robustness and efficiency of the financial system. It is a good time to talk about digital finance and market disruption for at least two reasons: - 2018 is both the 10th anniversary of the Lehman bankruptcy and that of Nakamoto’s paper underlying Bitcoin. - those events have unleashed regulatory and market developments and innovations that should contribute to both strengthen and change the role and structure of financial intermediation. As a result, we see a complex set of interactions, involving competition and cooperation, which are developing between “old” and “new” players and which are likely to coexist in the intermediation space going forward. “What does that mean in terms of financial stability?” and “how does this coexistence affect central banking?” are two questions open for discussion at today’s conference. But for the time being, let me quickly follow two leads. I. Promises of digital finance: redefining financial intermediation? First point: The digitalization of finance is prospering on the ground of cutting-edge technologies.