regulations and auditors demand a valuation of the products to market price. perhaps it is so that not all ideas from the first years of this millennium deserve to survive. there is need of better transparency rather than further regulation the debate about regulation of hedge funds ’ activities has gained fresh impetus in the wake of the crisis – somewhat surprisingly, since the blame can hardly be placed on the hedge funds. my view in this matter is that there is no reason to introduce specific regulations for hedge funds, apart from greater insight where it is lacking. such measures threaten the positive contribution hedge funds make, not least under the conditions which we have now experienced. for those of us who reflect on stability in the financial system, it is however extremely important that the major banks ’ and the hedge funds ’ other counterparties can manage their risk. if they manage their counterparty exposures in a correct manner, that is they take sufficient collateral and can manage any liquidity problems, there is no reason to specifically regulate the hedge funds. however, periods of market turmoil tend to entail certain unpleasantness. i consider that the ensuing debate should focus on market discipline in a broad sense. transparency is a key word in this context. by means of clear and open information about strategies and risk taking conditions are created for good market discipline. good insight is also of the utmost importance to those of us who oversee financial stability. this gives us a chance to decide where the risks are. now that i speak of the need for market discipline, i would like to mention the global association, the financial stability forum ( fsf ). 6 fsf has urged the global hedge fund industry to review and enhance existing practices. in order to meet this challenge, a working group has been formed by private initiative, the hedge fund working group. most of the members of the working group are based in london, but swedish agents are also represented. the work of the group has resulted in recommendations for the hedge fund market. they focus on areas such as transparency, but also on valuation, accounting and risk management and they give recommendations for the hedge fund market. the final report see the update of the fsf ’ s report on highly leveraged institutions ( may 2007 ). was presented last week. although this report does not have any official legal status, it will be an important starting point for further discussion on the subject. insight in sweden is relatively good i have for some time now kept to the international arena. let me now say a few words about swedish

04 / 11 / 2020 the two sides of the ( stable ) coin speech the two sides of the ( stable ) coin speech by fabio panetta, member of the executive board of the ecb, at il salone dei pagamenti frankfurt am main, 4 november 2020 the payments industry is undergoing a digital transformation, and this transformation is accelerating. we can now pay with cards that are stored in our mobile wallets, ready for a transaction to be initiated at the touch of a button. mobile payment apps allow us to easily pay or send money to friends. new services based on application programming interfaces, such as payment initiation services, are expanding consumers ’ choice of e - commerce payments. fintechs have sparked the latest wave of innovation. in a recent survey by the european system of central banks, over 200 new payment solutions were reported, of which more than one - third were provided by start - ups. new providers have progressively shifted their business models from fee - based to data - driven, where payment services are provided free of charge in exchange for personal data that offer deep insights into users ’ preferences. the global technology firms – the so - called big techs – are using this model to leverage their large customer base and expand in global markets. thanks to their global footprint, they are uniquely positioned to offer services in the area of global cross - border transactions, where current solutions are low quality and expensive. this is the backdrop against which stablecoins have emerged. they could be used by the big techs to offer innovative payment solutions that work both within and across national borders. while stablecoin initiatives are still in their infancy, they should be carefully analysed as they could radically transform the payments landscape. today, i will discuss the potential advantages and risks of stablecoins, and their implications for the payments market, the financial sector and the overall economy. i will then turn to the forward - looking policies that are needed to steer innovation towards welfare - enhancing outcomes. two sides of the same ( stable ) coin stablecoins are digital units of value designed to minimise fluctuations in their price against a reference currency or basket of currencies. [ 2 ] to this end, some stablecoin initiatives pledge to hold a reserve of state - issued currencies or other assets against which stablecoin holdings can be redeemed or exchanged. stablecoins became the subject of heated debate last year, after the technology giant facebook and its partners announced their own global stable