european directive on payment services ( psd2 ) is a significant driver of innovation. more broadly, since its creation in 2016, around 300 fintechs have been guided by france ’ s acpr fintech innovation hub. there are so many promising innovations which will increase customers ’ satisfaction, enhance competition and reduce costs. and clearly each of them – from big data to payment services – requires a specific monitoring and response by regulators, with an open and evolutive view. “ one size fits all ”, and “ one time seizes all ” would be two bad answers to financial innovation. let me however share some thoughts on four common challenges and opportunities : cyber risks, crypto - assets, artificial intelligence and climate change. cyber risks are a major threat, and so investing in cybersecurity is the first booster to innovation. it is clear that the current level of coordination of cyber - attacks can only be mitigated by a similarly coordinated response. we should strengthen the g7 cyber expert group, and the “ bari principles ” adopted last may. therefore i welcome the creation of a g7 group dedicated to cross - border cyber exercises, and i confirm today that the banque de france will coordinate the g7 test in 2019. cybersecurity will indeed be one of the priorities of the forthcoming french presidency of the g7 next year. besides cyber risks, we need to seriously deal with the emergence of crypto - assets. the underlying technology clearly promises sustainable innovation. the banque de france was the first central bank to offer a service to the market based on blockchain and we intend to carry on experimenting with this technology. but support for blockchain doesn ’ t mean blind support for bitcoin and the like speculative assets. we were clear in the g20 last month, and let me be clear today. first, the frequent use of the term “ digital or virtual currency ” misleads the general public on what those assets really are : they are not currencies, with none of a currency ’ s key functions – store of value, medium of exchange, unit of account. moreover, crypto - assets carry obvious risks in terms of consumer and investor protection, as well as money laundering and terrorist financing. therefore they require internationally harmonised answers : the financial stability board, in consultation with other standard - setting bodies and the financial action task force ( fatf ), should make recommendations by next july. in particular, we should work on exchanges

initiatives, especially on shadow banking. indeed, the regulatory priority is no longer the solvency of banks, but the liquidity of non - banks : we stressed these financial stability risks in our washington meetings last week. tomorrow, we at the banque de france will publish the 2018 financial stability review that is focused on fast - growing market - based finance. i stress that we have to better monitor it, test it – through liquidity stress - tests –, and regulate it when necessary. financial stability is our common good, and we should also face a more subtle threat to it : debt complacency on a global level, in the context of accommodative monetary policies which will be less warranted in the near future. global debt was already about 200 % of world gdp before the crisis ( 2007 ), but is up to 220 % today. sound fiscal policies for public debt, responsible lending by financial actors for private debt and – if needed – macroprudential measures, should react against this debt complacency. 1 / 3 bis central bankers'speeches more broadly on multilateralism, we should continue to work together to preserve the world economic and trade order. we europeans, shoulder - to - shoulder with canada, japan and others, must resolutely defend international economic relations based on commonly respected rules and multilateral institutions : we are all aware that an escalation of protectionist threats from the united states would dampen growth everywhere. the recent uncertainty is probably already having some negative effects on investment : you saw it in the british economy since the brexit vote in 2016. and real tariffs would hurt more : according to most calculations including ours, a 10 % increase in tariffs would diminish world trade by double digit figures, and decrease global gdp by more than 2 %, starting in the united states. 2. the finance of tomorrow let me now turn to my second point : the finance of tomorrow in an interconnected world. let me first remind you that france and the united kingdom have already developed a similar – and i believe promising – approach to regulating innovation. call it “ proportionality ” in paris or “ sandbox ” in london. but it is the way of solving an apparent paradox : for many, regulation is the enemy of innovation. in fact, regulation has a role to play in order to boost and secure innovation at the same time. to give an example, by allowing third parties to safely access payment data, the revised