rut presently, crypto - asset market structures continue to develop at a rapid pace. and at the same time, we see a growing involvement of traditional finance with the crypto - ecosystem – which means that the financial interlinkages between these two worlds are growing as well. so we cannot exclude that, sooner rather than later, vulnerabilities in crypto - asset markets become big enough to form an actual, transmissible risk to global financial stability. and this risk looms larger if we don't implement comprehensive regulation. 1 / 4 bis - central bankers'speeches all over the world, national regulators have not been waiting on me to say this. a lot of decisive action has been taken already. the fsb welcomes these initiatives because they show much - needed willingness to act. but at the same time, we see a challenge due to crypto's inherent global reach. and that is : how do we ensure consistency between all these regulations? and how do we deal with crypto parties that choose to operate exactly from those jurisdictions that don't really prioritise the effective regulation and supervision of crypto - asset activities? to overcome these challenges, the fsb developed a global regulatory framework. this framework, published last july, aims to promote the consistency of regulatory and supervisory practices to address the financial stability risks of crypto - asset activities ( more information ). developing this framework on the basis of consensus among the fsb member authorities has required a careful threading of the needle. and so, i think it is fitting that we find ourselves on threadneedle street, today. the perfect place to discuss the fsb's finalized policy work on broader crypto - asset markets and global stablecoin arrangements. the latter is a specific type of crypto - asset – one that aims to maintain a stable value relative to a pool of assets, usually fiat money. one that carries heightened risks to global financial stability because of its potential systemic relevance in multiple jurisdictions. and so, one that requires special attention. because the fsb recommendations are high - level, national authorities can apply these recommendations flexibly, whilst also ensuring a baseline – a baseline that provides for a consistent application of comprehensive regulation across the globe. a baseline that embraces both already existing rules in some countries, and to be drafted regulations in others. a baseline with a clear thread of gold – and that is the principle of " same activity, same risk, same regulation ". many crypto

to financial stability, the fsb will investigate how cross - border cooperation between advanced and developing economies can practically be enhanced. dear colleagues, today, i've talked about crypto - assets – a concept that is not even 20 years old. the bank of england's nickname, the'old lady of threadneedle street ', dates back more than two hundred years. to 1797. when crypto - assets were still the distant future. banknotes could still be converted to gold. and france declared war on britain, and landed on its shores. within hours, people rushed to the bank of england. asking for gold. the very gold that lies under our feet. and the famous vaults were rapidly emptying out. then - prime minister, william pitt the younger, tried to put a halt to that. not because he wanted to preserve gold for financial stability reasons, but to use it to defend britain. in a famous cartoon, probably familiar to many of you, you can see william pitt the younger trying to'woo'an old lady ( more information ). but in fact, all he wants, is the gold in her pockets and in the chest she sits on. of course, she is not inclined to give in. ever since, the bank of england has been known as the'old lady of threadneedle street '. today, the'old ladies'many of us work for, will no longer exchange banknotes for gold. but still people look for stable assets – assets that maintain their value over time and allow them to transact with people from around the globe. today, these'old ladies ', can still not easily be'woo - ed '. and remain firmly seated on their chests of gold – or, rather, vaults. and today, once more, these'old ladies'are willing to defend what knits us all together and helps to bring global prosperity – and that's financial stability. thank you. 4 / 4 bis - central bankers'speeches