, and the european commission among others – is a step into the right direction. however, the esrb will contribute effectively to systemic risk control only if an unpoliticised open analysis and discussion is ensured. therefore, central banks should have sufficient representation on this board and be given adequate weight. there are two more arguments why central banks should play a key role in banking supervision. first, the interdependence of monetary policy and the financial system means that central banks have a strong and natural interest in financial stability. second, central banks in most countries are strongly involved in banking supervision and can therefore bring their expertise to bear in this field. having said that, i do not want to skim over the fact that central banks, too, have their own lessons to draw from the financial crisis. one of the lessons which certainly has to be learned is that the stability of the financial system is an essential condition in its own right which has to be taken into account in the conduct of monetary policy. in this context, the paper borio and zhu presented at this conference points to a very important link between monetary policy and the perception of risk by economic agents – something which has, so far, been neglected. although more research is undoubtedly needed before we can speak of risktaking as a new channel in the monetary policy transmission process, major lessons for monetary policy can be drawn from the findings of this paper. in particular, the conclusions support the call for a more symmetric monetary policy that tries to look through the financial cycle in stabilising monetary policy. conclusion ladies and gentlemen safeguarding financial stability has been the paramount objective of banking regulation. unfortunately, it has usually been only the painful experience of financial crisis which has been a catalyst for implementing the necessary regulatory changes. from history and not least from the current financial crisis we should learn that banking regulation is exposed to permanent change, and so the debate on the future of banking regulation must and will go on. thank you very much for your attention.

, including, of course, germany and spain. according to our survey, apple pay is the most popular wallet service in germany. there is a danger for banks of being sidelined as interchangeable settlement agents. at the moment, bigtechs in europe rely on cooperation with banks for the settlement of payments. a payment made using apple pay or google pay is mostly settled via the credit card stored in the wallet, but issued by a bank. the next step could be to create closed payment systems that are no longer based on established payment instruments and actors. the idea here is to issue one's own " platform money ", notably in the form of a " stablecoin ". the most prominent example of such a concept was probably the diem initiative ( formerly known as libra ) launched by meta. stablecoins often peg their value to an existing currency or to a currency basket. moreover, their value is backed by suitable collateral. stablecoins therefore mimic the functions of money, owing to their dependence on widely accepted currencies. however, if the reserve assets are insufficient or if stablecoins can only be converted to other forms of money to a limited extent, this entails the risk of losses. the turbulences 2 / 6 bis - central bankers'speeches in the crypto market in recent months, during which stablecoins also lost massively in value, have shown just how high these losses can be. for instance, terrausd almost lost its full value compared with the us dollar. instabilities can also arise if many holders want to exchange their stablecoins back into " real " money due to a loss of confidence. in this case, a scenario similar to a typical bank run might occur. this risk might further increase as a result of strong interdependencies between stablecoins and other crypto assets in decentralised finance ( defi ) markets. in this context, europe is working at full speed to finalise the markets in crypto assets regulation – mica. with mica, the european union is creating a single european regulatory framework for crypto assets. mica will protect european customers investing in crypto assets and prevent misuse of crypto assets, while being innovation - friendly and maintaining the attractiveness and competitiveness of the european market. 3 speeding up existing infrastructures but legislation is only one part of the puzzle. what steps should we, as central banks, take in response to the challenges posed by digital