This means harnessing technology to increase efficiency, manage risks better, create new opportunities, and improve people’s lives If Singapore is to maintain its position as one of the top financial centres in the world, it must embrace FinTech – maximising its benefits, minimising its risks. STRATEGIES FOR A SMART FINANCIAL CENTRE And so, for the last two to three years, the Monetary Authority of Singapore (MAS) has been working together with the industry to foster a thriving FinTech hub. This requires getting several pieces right: an ecosystem of diverse players competing and collaborating; an open architecture economy that enables connectivity and innovation; a web of international links to promote the exchange of ideas and scale solutions; a strong talent pool and deep research capabilities; 1/9  BIS central bankers' speeches  a conducive regulatory environment; and a safe and secure cyber environment. Ecosystem of Diverse Players We want to create an ecosystem for innovation, where established financial institutions and FinTech start-ups compete as well as collaborate. Financial institutions are no longer the laggards and technology dinosaurs of popular myth. I know this from my conversations with CEOs of global banks and insurance companies. Almost every major financial institution has an active innovation agenda to strengthen its business by harnessing technology. Many CEOs today can carry on an intelligent conversation about blockchains without looking at their notes – this is a big change from just two years ago. Singapore wants to be the place where these financial institutions test, develop, and apply new technology solutions.

The new act was also needed to adapt the Riksbank’s activities to the requirements ensuing from Sweden’s membership of the EU. 8 How was the increased independence felt by the Riksbank? When one talks about central bank independence, one usually distinguishes between goal independence and instrument independence. This may sound cryptic, but goal independence means that the central bank determines its own operational target, which is to be attained to meet the legislator’s intention of price stability, for instance an inflation rate of 2 per cent. Instrument independence means 3 See Jonung et al. (2003). As early as in 1931-1937, the Riksbank was the first central bank in the world to have a price stability objective. After that, however, followed a period of 50 years with various fixed exchange-rate regimes. 5 See, for instance, the classical articles by Kydland and Prescott (1977), Barro and Gordon (1983) and Rogoff (1985). For more descriptive and explanatory reviews, see Apel and Viotti (1998) and Heikensten (2005). 6 A classical article on this subject is the one by Alesina and Summers (1993). 7 See, for instance, Fischer (2015) and Bernanke (2017). 8 The requirement for independent central banks follows on from Article 130 of the Treaty on the Functioning of the European Union and applies to all EU member states. The motives behind the EU legislation were in turn based on academic research and the experiences of ‘The Great Inflation’, the period when inflation rose in many parts of the world during the 1970s.