##c ) from 2002 to 2018, the longest - serving governor of 1 / 2 bis central bankers'speeches the pboc. dr zhou became one of the most respected central bankers on the international circuit. in february this year, dr zhou was awarded the lifetime central banking award by london - based publication central banking, a most fitting recognition of his contributions to the chinese economy and financial sector. from a bilateral perspective, during dr zhou ’ s tenure, the pboc and mas forged close ties and deepened financial and regulatory cooperation. we collaborated successfully in several areas over the years, particularly in promoting the greater use of rmb in the region. pboc ’ s decision in 2013, under dr zhou ’ s leadership, to appoint the industrial and commercial bank of china as singapore ’ s rmb clearing bank was a significant milestone and spurred the growth of singapore as a key rmb offshore centre. in 2016, mas announced that rmb assets would be included as part of our official foreign reserves, three years ahead of the inclusion of chinese bonds in key global bond indices. at the personal level, i have had the pleasure and privilege to interact with xiaochuan at many international and bilateral meetings. i have always found his views insightful. at our bi - monthly meetings of central bank governors in basel at the bank for international settlements, i would sometimes ask xiaochuan some rather inconvenient questions – about risks related to shadow banking or industrial overcapacity in china. xiaochuan would always answer these questions, as well as those from other governors, with a disarming candour and clarity, never avoiding the hard issues. this not only helped to build trust among his counterparts in the international community but also endeared xiaochuan to many of us as someone we could count on for insights into the complexities of the chinese economy and financial system. today, dr zhou will speak on “ the rise of technology in finance – opportunities and challenges for central banking ”. many of us are familiar with dr zhou ’ s views on financial and economic reforms. but not many of us know that that when it comes to technology, dr zhou was ahead of the curve amongst his peers. in 2014, before the words “ fintech ” and “ digital currencies ” became popular, dr zhou set up a digital currency research institute within the pboc to explore how new technologies like the blockchain and digital tokens could improve and strengthen china ’ s financial system

for sensible investment is paramount. in industrial countries, green energy initiatives such as carbon taxes or emission limits, while giving industry clear signals on where to invest, also have the ability to move the needle on aggregate investment and help long run goals on environment protection. most emerging markets have large infrastructure investment needs. we still need to understand how to improve project selection and finance – too much public sector involvement results in sloth and rent seeking, too much private sector involvement leads to risk intolerance and profiteering. going forward, well - designed public private partnerships, drawing on successful experiences elsewhere, should complement private initiative. the australian presidency of the g 20 created a welcome mechanism to share best investment practices across countries. at the same time, we must recognize that large scale investment projects need patient risk capital, which is in short supply in emerging markets. private investors rarely have the risk tolerance that governments or multilateral institutions based on the world economic outlook database. emerging economies include “ emerging and developing ” countries. net capital flows include net direct investment, net portfolio investment, and “ other ” net investment. indeed, similar to the behavior of commercial banks, the willingness of emerging market central banks to hold short term paper in response to capital inflows enhances the ability of the industrial country central bank to engage in further ump. in a sense, emerging market central banks provide liquidity for foreign investors by holding precautionary reserves. for those who advocate allowing exchange rate adjustment as central to macro - management, it should be sobering that countries that allowed the real exchange rate to appreciate the most during the prior period of quantitative easing suffered the greatest adverse impact to financial conditions ( see eichengreen, barry and poonam gupta ( 2013 ), “ tapering talk : the impact of expectations of reduced federal reserve security purchases on emerging markets ”, working paper, university of california, berkeley and mishra, prachi, kenji moriyama, papa n ’ diaye and lam nguyen ( 2014 ), “ the impact of fed tapering announcements on emerging markets ”, imf working paper ). bis central bankers ’ speeches have. so, in addition to knowledge sharing, global growth would benefit from an augmentation of the capital base of multilateral institutions like the world bank, the african development bank, and the asian development bank, so that they can provide part of the patient risk tolerant capital the emerging world needs. despite competing domestic demands, industrial countries should recognize the important catalytic role that the