models and data to understand the interconnections between the banking system and nonbank financial institutions. indeed, one of the themes of this conference is data needs, and the focus on this issue is an important aspect of this conference. history has demonstrated that risks evolve in response to regulatory pressure and the animal spirits that emerge as memories fade, as well as to animal spirits. as a result, the infrastructure needed to learn the things we don ’ t know needs to be put in place. an essential element of that infrastructure is learning the lessons of history – both the lessons of what happened, and the fact that supervisors and regulators will on occasion be surprised. learning those lessons is not as simple a task as it may sound. but it is certainly a far more important task than it sounds. references acemoglu, daron, asuman ozdaglar, and alireza tahbaz - salehi ( 2015 ). “ systemic risk and stability in financial networks, ” american economic review, vol. 105 ( february ), pp. 564 – 608. adrian, tobias, daniel covitz, and nellie liang ( 2013 ). “ financial stability monitoring ( pdf ), ” finance and economics discussion series 2013 – 21. washington : board of governors of the federal reserve system, march. allen, franklin, ana babus, and elena carletti ( 2012 ). “ asset commonality, debt maturity and systemic risk, ” journal of financial economics, vol. 104 ( june ), pp. 519 – 34. duarte and eisenbach ( 2015 ) examine interconnections associated with fire sales and common exposures. hale, kapan, and minoiu ( 2014 ) examine a bank network and discuss related approaches. caballero and simsek ( 2013 ) discuss complexity and network stability. research emphasizing direct connections and common holdings includes allen, babus, and carletti ( 2012 ) ; and acemoglu, ozdaglar, and tahbaz - salehi ( 2015 ). in a sense, this section has discussed what soon after the collapse of lehman brothers began to be called “ macroprudential supervision ”, by which at that stage was meant supervision that focused on the dynamics of the financial system that resulted from interactions among financial institutions, of which the worldwide impact of the lehman failure was the outstanding example. over the course of a few years, the term “ macroprudential policies ” began generally

respect to consumer education and protecting investors ’ rights. ) to be clear, we do not endorse privately - issued cryptocurrencies as a medium of exchange. moreover, given their highly speculative and volatile nature, we do not endorse them as investment vehicles either. rather, our objective as a central bank is to address any risks that they may pose to the public even as they exist as a fact of life. this is consistent with our goal of increasing consumer protection. it is also in keeping with our advocacy against money laundering, terrorist financing and other crimes ( as you know, given cryptocurrency ’ s reliance on the full anonymity of those who transact in them, there is a propensity for this mode of payment to be used for illegal purposes ). in keeping with our mandate to promote financial stability, we also aim to address any risks posed by cryptocurrency to the financial system. these risks are not imagined. they arise as cryptocurrency necessarily interplays with the non - digital world – the regular economy – when they are exchanged into pesos or other traditional currency. it is important to note that privately - issued cryptocurrency is not legal tender. unlike fiat money, 1 / 5 bis central bankers'speeches such cryptocurrencies are not backed or guaranteed by any central monetary authority. only the bsp has the sole power and authority to issue currency within the philippines. under the law, no other person or entity, public or private, may put into circulation, notes, coins or any other object or document which might circulate as currency. our notes and coins are fully guaranteed by the government and are legal tender in the philippines for all public and private debts. while privately - issued cryptocurrencies do not enjoy legal tender status, they are, however, as a matter of practice, used as a medium of exchange and a store of value. but aren ’ t so many other things? the red paperclip story this brings to mind a story about a red paperclip that went viral. some of you may be familiar with it. in 2005, a canadian blogger – kyle macdonald began a series of transactions which he posted on - line. he began with a red paperclip as a medium of exchange. he exchanged this for an interesting looking fish - shaped pen, which he traded for an odd - looking doorknob … then a camp stove …