either through quasi - fixed exchange rates or with newly introduced capital controls. canada and india are not part of this group. but we are bearing the not insubstantial consequences of a weakened global recovery and the re - emergence of global imbalances. 2 as co - chairs of the framework working group, canada and india are working together to develop concrete and measurable policy commitments to be tabled at the cannes g - 20 summit in november. we have made good progress at the g - 20 table on indicators and guidelines to define significant and harmful economic imbalances. this experience has helped to foster a common understanding of the issues and problems across the g - 20 which, in turn, serves as a first step in achieving greater policy coordination. the working group ’ s focus now is on the key challenges of fostering greater exchange rate flexibility in emerging markets, encouraging deeper and more significant structural reforms, and strengthening the fiscal commitments made in toronto. both co - chairs also believe that there is a symmetry of interests between advanced and emerging economies in reducing the pace of reserve accumulation and are pursuing measurable commitments on this front. achieving consensus projections made by the international monetary fund show that imbalances narrowed from 2008 to mid - 2009, but have been widening ever since and, without policy adjustments, are expected to worsen. bis central bankers ’ speeches on all of these issues will require a shared understanding of the mutual benefits and, here, canada and india have an important role to play. conclusion let me conclude. the g - 20 countries have had considerable success outlining what must be done to enhance the resilience of the global financial system and to achieve stronger, more balanced growth. and the potential achievable benefits of taking collective action are large. the bank of canada conservatively estimates that the average net economic benefit to be gained over time by g - 20 economies from the stronger agreed capital and liquidity standards is 30 per cent of gdp in present - value terms, or about us $ 13 trillion. 3 further, if the g - 20 initiatives to unwind global imbalances are realized, the bank estimates that the level of global demand could be $ 6 trillion to $ 9 trillion dollars higher by 2015 than when compared to a scenario of deficient global demand. 4 but to achieve this promise, the pace of implementation of the g - 20 framework must step up. we are already bearing the consequences of inadequate adjustment. unsustainable macroeconomic policies are increasing uncertainty, under

basic functions of money. but as they evolve, they may touch on the bank of canada ’ s core functions : monetary policy, financial stability, payments and currency. in my remarks today, i ’ ll put these crypto developments in context, discuss the need for globally harmonized regulations and highlight the bank ’ s research and responses to public interest in cryptoassets. currency and trust bitcoin and many similar products were created in the hope that they would become the money of the future. how well do they stack up against the money of the past and present? this includes bank notes as well as bank deposits that can be accessed with a debit card or — for your parents ’ generation — by cheque. 4 let ’ s consider bank notes. one of our core functions at the bank of canada is to provide bank notes that canadians can use with confidence. this is perhaps the most visible aspect of our work. we all take for granted that if you want to buy a coffee you can pay with cash. the coffee shop deposits the cash in the bank and uses the funds to pay for beans and baristas ’ wages. the cash is universally accepted by all parties. why is that? first, bank notes are a simple but effective technology for keeping track of who is paying how much to whom. because a bank note is a physical thing, you can ’ t spend the same note twice. many canadians still prefer the simplicity of cash for small transactions. and cash works even when systems are down. second, bank notes offer privacy for your transactions. you can use them without giving anyone your personal or banking information. using cash avoids the risk of being hacked or having your card compromised. privacy is a controversial attribute given that bank notes are a preferred medium of exchange for all kinds of illicit transactions. but for entirely legitimate reasons, most people place a high value on the privacy of their financial transactions. third, we incorporate into our bank notes the most advanced security features to ensure they are difficult to fake and easy to authenticate. we also work closely with law - enforcement agencies to deter counterfeiting. fourth, the acceptance of money is a matter of social convention. people accept cash as a means of payment because they know that others will do the same. this convention is enshrined in law : canadians understand that we and the royal canadian mint have a monopoly on the issuance of what ’ s called legal tender, the official money used in canada. finally, bank notes