use cases of a tokenized cash ; and ( iv ) a universal bank which utilizes the blockchain platform to push its financial inclusion initiatives. let me quickly walk you through the five key steps in bsp ’ s test and learn approach : the first step is to allow for market to develop and innovations to take place. after engaging with fintech players, the bsp determines if the proposed innovation presents major regulatory concerns. this is where the bsp checks the eligibility requirements such as soundness and feasibility of the business model, the proposed solution is innovative and not covered by existing regulations and the proponent demonstrates sound track record as well as resources / capability to successfully launch the pilot. the next step is to proceed with flexibility yet with caution. during this phase, the bsp set certain limits / parameters or safeguards before fintech players fully market their products and services. we allow these pilot projects to run within clear parameters i. e. specific test time periods, localized markets or geography and limited users. likewise, risk management controls such as those covering cybersecurity risks, money laundering, consumer protection and other operational risks should be in place. the third step is to understand operating and business model. as the product or service is being offered in the market, the bsp can have better understanding of the operating / business models as well as technical considerations. the fourth step is for the bsp to adopt appropriate regulatory approach. once the bsp fully understands the operating / business model as well as detailed mechanics of the innovative product / service, appropriate regulations are then issued. lastly, the bsp closely monitors developments and related issues. we continue to monitor developments and introduce supervisory enhancements, when necessary, to address emerging issues and risks. similar with the bsp ’ s existing regulatory framework and supervisory approach covering banks and other financial institutions, the bsp also applies the same framework and approach that is commensurate to the fintech ’ s risk profile and systemic importance. this framework incorporates the following policy considerations : first is prudential objective – in determining how bsp should supervise fintechs, the safety 3 / 5 bis central bankers'speeches and soundness of the individual institution, the stability of the financial system, the advancement of financial inclusion, and the undue regulatory burden are all taken into consideration. second is the landscape of the financial system – in order to draw a holistic supervisory approach, bsp needs to have information on the financial ecosystem, particularly fintechs.

thomas jordan : the significance of academic research and teaching for the swiss model for success summary of a speech by mr thomas jordan, chairman of the governing board of the swiss national bank, at the dies academicus, university of bern, bern, 1 december 2018. * * * the complete speech can be found in german on the swiss national bank's website ( www. snb. ch ). the success of switzerland in recent decades has largely been driven by the strong performance of its education system, which is crucial for economic prosperity, social cohesion and equality of opportunity overall. the swiss national bank ( snb ), too, sets great store by a good education system, including universities that can hold their own against international competition. many of the staff recruited by the snb are destined for roles in which a university degree is a prerequisite. in addition, the snb maintains close ties with the academic world, so that the latest related research findings can be incorporated into monetary policy decision - making. the competition of ideas stimulates and creates incentives for higher - quality monetary policy. this pursuit of excellence in academic education should not just be aimed at research, however ; it should also target teaching. experience has shown that foundation courses have a lasting effect on students'attitudes to certain topics. teaching lays the basis for subsequent academic specialisation and career choice. as role models, professors carry a heavy responsibility. many senior managers and specialists view their student days as a pivotal time in their lives, so the quality of teaching has a major impact on both economy and administration. universities make a direct contribution to a country's prosperity by maintaining the necessary capabilities and developing and imparting knowledge that is useful for the economy and society. but their indirect contribution is just as important : universities must enable their graduates to understand and appreciate the significance of the swiss model for success. this model is based on the pillars of direct democracy, the rule of law, federalism and an awareness of the value of stable institutions. the terms'markets'and'competition'are key to understanding basic economic relationships, and are fundamental to ensuring prosperity, as well as to acquiring and applying new scientific knowledge. one of the tasks of a university is to provide its graduates and the general public with a realistic picture of the functioning and importance of markets and competition. only in this way can the swiss model for success endure in a world of constant change. 1 / 1 bis central bankers'speeches