such cost efficiencies, t2s will create new opportunities for “ value creation ”. bis central bankers ’ speeches t2s will standardise and commoditise settlement. private sector companies will now be in a position to innovate products that add more value for their clients. it will lead to the creation of new products that have not even been thought of today. ultimately, this stimulation to innovation and a higher quality of service could be the real benefits of t2s. the overall theme of the conference is what we envisage for “ securities settlement in 2020 : t2s and beyond ”. as you well know, the europe 2020 strategy launched by the commission in march 2010 aims at delivering a european economy with high - levels of employment, research and innovation, education, environmental and energy standards, with much less poverty and social exclusion. a much stronger economic governance framework should also ensure closer fiscal integration and sound public finances as a pillar of emu. accordingly, i very much hope that your reflections in this conference will help developing the key features of the securities market infrastructure that we need in 2020 to support our economy, as well as safeguarding financial stability. i hope you enjoy the rest of the conference. thank you for your attention. bis central bankers ’ speeches

top exporter. [ 13 ] and recent research indicates there is a significant correlation between a country ’ s trade with china and its holdings of renminbi as reserves. [ 14 ] new trade patterns may also lead to new alliances. one study finds that alliances can increase the share of a currency in the partner ’ s reserve holdings by roughly 30 percentage points. all this could create an opportunity for certain countries seeking to reduce their dependency on western payment systems and currency frameworks – be that for reasons of political preference, financial dependencies, or because of the use of financial sanctions in the past decade. anecdotal evidence, including official statements, suggests that some countries intend to increase their use of alternatives to major traditional currencies for invoicing international trade, such as the chinese renminbi or the indian rupee. [ 17 ] we are also seeing increased accumulation of gold as an alternative reserve asset, possibly driven by countries with closer geopolitical ties to china and russia. there are also attempts to create alternatives to swift. since 2014, russia has developed such a system for domestic and cross - border use, with over 50 banks across a dozen countries using it last year. and since 2015 china has established its own system to clear payments in renminbi. these developments do not point to any imminent loss of dominance for the us dollar or the euro. so far, the data do not show substantial changes in the use of international currencies. but they do suggest that international currency status should no longer be taken for granted. policy frameworks for a fragmenting world how should central banks respond to these twin challenges? we have clear examples of what not to do when faced with a sudden increase in volatility. in the 1970s, central banks faced upheaval in the geopolitical environment as opec became more assertive and energy prices that had been stable for decades ballooned. they failed to provide an anchor of monetary stability and inflation expectations de - anchored – a mistake that should never be repeated for as long as central banks are independent and have clear price stability mandates. so, if faced with persistent supply shocks, independent central banks can and will go ahead with ensuring price stability. but this can be achieved at a lower cost if other policies are cooperative and help replenish supply capacity. for example, if fiscal and structural policies focus on removing supply constraints created by the new geopolitics – such as securing resilient supply chains or diversifying energy production