been significant, in many ways it feels like just the beginning. 2 / 7 bis - central bankers'speeches all of this adds to my growing sense that the pace of change we see and feel today in financial services, combined with the uncertain and challenging environment, makes change in the present very different than change in the past. this no doubt creates an enhanced sense of unpredictability, and for some, perhaps a sense of anxiety. so i suppose the question is how do we, and how are we, navigating this change? sticking to our principles navigating change is complex, but sometimes to overcome complexity, you need to seek simplicity. and, while it is important to be adaptable, in times of rapid change central banks should also remain anchored to the fundamentals, and remember that no matter how novel or innovative something is, the basics of good governance, good risk management and delivering in the interests of consumers, investors and the wider economy remains the same. 2 from a regulatory perspective, i have spoken before that to achieve positive outcomes the necessary foundations or principles must be in place. our regulatory approach at the central bank of ireland is underpinned by six principles. regulation must be ( i ) forward looking, ( ii ) connected, ( iii ) proportionate, ( iv ) predictable, ( v ) transparent and ( vi ) agile. 3 while these principles are general, i think they are increasingly relevant to meet the challenges of today as well as the opportunities and risks that a rapidly digitalising financial sector is bringing in the near future. it goes without saying that we need to be forward - looking to ensure we can continue to deliver in the face of rapid change. and in a world that is fragmenting, it is all the more necessary to be connected with peer regulators, with industry and with our citizens. being proportionate means harnessing benefits while mitigating risks. it doesn't mean compromising on our fundamentals which are even more important in times of rapid change. predictability and transparency matter for the regulator and the industry. if we are predictable and transparent, then regulated entities will be able to deliver on our expectations even in times of uncertainty and change. and finally agility is something not often associated with central banks but i would say we have demonstrated a great degree of agility in the response to the numerous shocks of recent years. and in the face of rapid innovation in the financial sector, i think embedding that agility into business

abandon the system we are familiar with but it does mean that central banks need to ensure that they keep up with the digital age. and, in particular that public money is available in digital form. which brings me to the digital euro. a digital euro would be a digital form of cash, issued by the central bank and available to everyone in the euro area. a digital euro would go hand in hand with banknotes, providing – for free – an all - in - one digital payment option across the euro area. it will blend the simplicity of cash with digital convenience while maintaining the highest levels of privacy. it is a logical next step for our single currency. the final decision on whether or not to issue a digital euro will only be taken once european legislators have defined its legal framework. but in my view the financial system must remain primed to adopt and reap the benefits of innovation generally, including a digital euro. conclusion we live in uncertain, perhaps turbulent, times. central banks need to remain anchors of stability, but that does not mean we need to wait for calm before we take action. the challenges facing central banks are complex and multi - faceted. effective strategies rely on the interconnectedness of regulators, firms, consumers and the financial ecosystem. but they need more than just better communication. our collective regulatory response to the changes in the financial services industry will shape the next decade, so we need to think holistically about regulation, how it can ensure financial stability, build resilience and support effective innovation that delivers for positive outcomes for citizens. well - designed rules leads to stronger financial services firms and stronger firms are better able to serve the needs of consumers, households, businesses and the wider economy. 1 the transformative power of innovation in the financial system - speech by cecilia skingsley 6 / 7 bis - central bankers'speeches 2 innovation and trust speech by sharon donnery 2024 3 financial system conference speech 2022 4 central bank of ireland strategy ( pdf 2. 57mb ) 5 central bank of ireland innovation sandbox programme 6 consumer protection code review 7 / 7 bis - central bankers'speeches