insights which require further analysis, research and dialogue. however, pondering on the lessons learnt and the insights gained should not lead to ‘ analysis paralysis ’ or unnecessary pontification. it is important to interrogate the efficiencies and benefits that new technology may introduce. in the context of dlt - based platforms in financial markets, potential efficiencies relate to : • increased transparency in the holding of securities ; • reduction in costs due to automation ; and • the removal of multiple manual reconciliation processes across a network of intermediaries. one of the primary risks stems from the lack of regulatory certainty as the existing legal and regulatory frameworks for financial markets were not designed for trading, clearing or settling on dlt. promoting responsible innovation this looks at how innovation should be done in a way that the financial system is taken forward to benefit society as a whole. this includes contributing to achieving objectives such as : • improving efficiency ; • lowering barriers to entry for financial activity ; and • addressing any challenges restricting access to meaningful financial services. policy and regulatory implications the insights gained through practical exploration should lead to greater regulatory clarity – both for innovators and for regulators – and should be in the broader interest of ensuring a level playing field for all market participants. as financial services regulators in south africa, we follow an activity - based and technology - neutral approach, although we are not technology - blind. it may well be that innovation enabled by dlt may change the risks involved in a particular business page 5 of 6 process, for instance reducing or even eliminating counterparty risk, which may in turn require us to reconsider the appropriateness of specific regulations. regulators need to move with caution when considering developments before they implement any regulatory changes. they should be fully appreciative that regulated entities require clarity before fully committing to entering dlt - based markets. conclusion as i conclude, some may ask whether central banks and regulators will still be relevant in a world based on some of the decentralised principles explored in project khokha. from a regulatory perspective, i think it is unlikely that decentralised markets will be suitable in all instances or that decentralisation will guarantee the achievement of public policy objectives such as consumer protection, financial stability as well as safety and soundness, which fall within the mandates of central banks and regulators. the role of central banks, regulators and policymakers should, however, evolve with financial markets to ensure that we continue to fulfil our mandates in future financial markets

. central banks, regulators and policymakers can – and indeed must – play an active role in shaping a potential move to dlt - based markets through playing with purpose, playing in a collaborative way, pondering the implications of innovation, promoting responsible innovation for the public good, and informing an appropriate policy and regulatory response. thank you. page 6 of 6