a bit unfamiliar to many. 14. over time, it has become apparent that these innovations, in particular the technologies and business innovation underpinning them, are here to stay and will naturally develop in a healthy financial system like hong kong ’ s. they have the potential to improve efficiencies, reduce intermediary cost and promote innovation. 15. digital innovations encompass a wide spectrum of products and services beyond the commonly - known crypto - currencies. defi, given its composability feature, can inspire innovation in finance. take tokenised green bonds as an example. we concept - tested the idea with the bis innovation hub last year and are adopting it for an actual issuance later this year. when both bond and cash are tokenised and brought on - chain, all bond lifecycle events like asset servicing, trading and redemption can happen more efficiently in a distributed manner. it could even make possible real - time tracking of the green impact. 16. in addition to traditional financial assets, the blockchain technology also allows fractionalisation of asset ownership in art, real estate or other assets, creating new forms of financial intermediation. with radical open - mindedness, we can use technological innovations to make financial markets more complete and bring benefits for the real world. 17. now, wearing my hat as a regulator, a “ radically open mind ” does not mean that financial stability falls by the wayside. the use of digital innovations needs to be complemented by a clear approach to money laundering and financial risks. we continuously work with banks to achieve this. we also ensure that consumers and investors understand the risks associated with investments in these still - largely unregulated products. 18. to do this we need to put in the right guardrails. the basic principle is “ same activity, same risks, same regulation ”, such that digital assets performing similar functions to traditional products should be subject to similar regulations. this is exactly what we and other regulators in hong kong are doing. 19. the hkma is putting in place a risk - based and proportionate regulatory regime for payment - related stablecoins. the sfc is introducing a framework to regulate digital asset trading platforms. we have issued guidance to banks on what they need to watch out for if they wish to offer crypto - or defi - related services, whether for account opening or custodial services. 20. these guardrails will provide a solid foundation with a clear set

norman t l chan : master ’ s degree 2009 – 2010 graduation ceremony speech by mr norman t l chan, chief executive of the hong kong monetary authority, at the chinese university of hong kong master ’ s degree 2009 – 2010 graduation ceremony, hong kong, 17 december 2010. * * * professor wong, professor lee, faculty members, graduates, ladies and gentlemen, it is a great honour to be invited to speak at today ’ s graduation ceremony. i am so happy to see so many fine men and women graduating today. all of you have made well earned accomplishments that make your parents and families feel very proud. on this joyful day, it is clearly a time for celebrations and photograph - taking with families and friends. however, some of you may, when you have a few quiet moments of your own, ask yourselves these questions : what would i become in 10, 20 or 30 years ’ time? have i chosen the right field or career? what does it take to succeed and make a name in the society as so many of my cuhk seniors have done before me? these are very pertinent questions and certainly i did ask myself these questions when i attended my own graduation ceremony in the cuhk some 34 years ago. in talking about successful people, i am sure all of us have our own idols. but very few people will disagree with me if i refer to bill gates as a prime example of success. we all know who bill gates is and how he set up the most profitable software company called microsoft. bill gates is now the richest man in the world and is spending most of his time doing charity work worldwide. bill gates is clearly an idol for lots of people, old and young, and a symbol of great success. but how come bill gates has become so successful? many say he is a genius, both in computer programming and in doing business. but is it that simple? i have just recently come across a book written by malcolm gladwell, who has referred to an interesting thesis called the 10, 000 hours rule. to understand this thesis, you have to look closer at bill gate ’ s life. no doubt bill gates is very clever and is extremely talented in computer programming. however, what made him so special as distinct from so many other equally clever and talented people in the past three to four decades is that by the time gates dropped out from harvard in his sophomore year in mid - 1970s to set up his little backyard software company, he already had