energy sector are better now than they have ever been. first, excess reserves have averaged $ 2. 3 billion throughout 2010, and the foreign exchange situation is strong enough to afford such loans. second, interest rate differentials between domestic and foreign interest rates have virtually disappeared and investors are looking for investment opportunities. in principle, there is the potential for both bank and capital market financing. over the years, there have been two proposals pertaining to the multi - national upstream sector. the first is for these corporations to ring - fence their domestic operations and open these up to wider public participation – listed on the domestic stock exchange. the practical implications of this have not really been explored. there is, however, a view among some multi - nationals that adhering to differing capital market regulations in developing countries will be an unnecessary hassle. it should be noted, however, that listings of multi - national operations have been successfully undertaken in countries such as nigeria where chevrontexaco and mobil are listed on the nigeria stock exchange. in the local context, it is not clear, for example, whether tax incentives could be used under these circumstances. could some level of local equity participation be made a condition for new entrants? i raised this with an industry insider and the retort was... “ could the process start with bringing petrotrin and ngc ( or part thereof ) to market? ” an interesting question indeed. second, the issue of depository receipts has also been raised. domestic capital in the energy sector could be enhanced with the introduction of depository receipts by the multinational corporations that operate locally. a depository receipt ( dr ) is a security issued by a depository bank to domestic buyers as a substitute for direct ownership of stock in foreign companies. a dr is a convenient way for companies whose stock is listed on a foreign exchange to cross - list their stock on the trinidad and tobago stock exchange ( ttse ) and make stocks available for purchase by local investors without the concern of currency differences. drs have increasingly become a facet of the capital markets of countries where there is a strong multinational presence. drs are issued in countries such as india, taiwan, hong bis central bankers ’ speeches kong and south korea. there is already a depository bank with local operations ( citibank ) that can facilitate the process. however, the challenge would lie in the negotiations with the multinationals – convincing them of the advantages of issuing drs. perhaps the government can consider enshrini

activities. given the risks posed by leverage, banks should not accept vcs as collateral, or should only accept them with haircuts that appropriately reflect past volatility and liquidity, as well as market and operational risks. likewise, limits on leverage could be examined. conclusion let me conclude. do vcs herald a new world of money? no, virtual currencies are a misnomer in the first place. they are not money, nor will they become money in the foreseeable future. they lack the official recognition and backing of a public authority. their market share is still small, the amount of money at risk in financial market infrastructures is insignificant and their ties to the real economy are still limited. 4 / 5 bis central bankers'speeches but this can change. authorities should therefore pay close attention to mitigating the potential risks that could stem from a growing vc market. we have to be mindful not to have the complex and interlinked financial system contaminated by immature technologies or shallow business models. interfaces and gatekeepers require particular scrutiny. likewise, we should not succumb to the temptation to sacrifice the achievement of a level playing field for innovative advances that are aimed at regulatory arbitrage. but i don ’ t want to sound too negative. it is not unknown for new innovations to bring about euphoria, which in turn fuels bubbles that eventually burst. still, just because the initial euphoria subsequently fades, does not mean that the innovation itself is without virtue. these virtual currencies are clearly not suitable for use as money, but the underlying technology may, in time, become useful and widespread. and although we at the ecb don ’ t intend to introduce a central bank digital currency for the foreseeable future, we are actively experimenting with the technologies. we will be able to cater for changing needs in trusted and stable central bank liabilities that are accessible to the citizens, if and when this becomes necessary. 1 see the economist, 28 april 2018, p. 65. 2 see the report of the committee on payments and market infrastructures entitled “ distributed ledger technology in payment, clearing and settlement : an analytical framework ”, february 2017. 3 in january 2018 tokyo - based vc exchange coincheck was hacked and €430 million of virtual currency was stolen. 4 a survey found that 20 % of vc asset owners used debt to finance purchases. see kharif, o. ( 2018 ), “ bitcoin on