has demonstrated the difficulty of retrofitting regulation on new technologies and new business models after they have reached systemic scale. it is, of course, possible that neither of these two reasons - investor protection and protection against financial stability risk - will be relevant because the very instability and riskiness of the world of unregulated crypto finance, most recently demonstrated by ftx, will in the end ensure that the sector cannot grow. indeed, some have argued for regulators grappling with the crypto world to keep it outside the regulatory framework to ensure that users ’ ‘ caveat emptor ’ concerns prevents both growth and connection with mainstream finance [ 4 ]. and that leads to my third reason. forecasting the direction and pace of technological innovation is an even more uncertain game than economic forecasting. promising technologies fall by the wayside ; unexpected ones flourish. and technologies combine in ways that cannot be anticipated. but the technologies that have been pioneered and refined in the crypto world, such as tokenisation, encryption, distribution, atomic settlement and smart contracts, not only seem unlikely to go away as our everyday lives become more ‘ digital ’, but may well have the potential to improve efficiency, functionality and reduce risk in the financial system. a potential example of this is the integration of functions in ‘ smart contracts ’ that i mentioned earlier. a possible use case for such integration, which has been pioneered in the defi world is the combining the functions of trading, clearing and settlement of tokenised financial assets into a single, instantaneous contract, rather than being carried out in sequence by three separate institutions over a number of day. this, if applied to ‘ real world ’ assets, like equities, could offer a substantial improvement in the efficiency of financial market infrastructure and reduce risks by enabling instant settlement – t plus now [ 5 ]. there are of course risks in such integration as i mentioned earlier, whether it happens organisationally or technologically. the bank of england is working with the fca and the treasury to set up a regulatory ‘ sand box ’ for developers to explore whether and how those risks can be managed to the level of assurance we expect from the current system so my third reason for bringing the activities of the crypto world within the relevant regulatory frameworks is to foster innovation. this may appear counter intuitive to those who see regulation as opposed to innovation. but, as i have said before, ‘ people do not fly in unsafe aeroplanes ’. innovation may start in un

project finance exposures. second, our holistic and inclusive approach the economy ’ s stellar performance does not warrant complacency. there is still an important 3 / 5 bis central bankers'speeches task ahead of us. while the philippines is fast growing, about a fifth of our population still lives below the poverty line. at the bsp, we are passionate about empowering filipinos, especially those from lower income groups and we strive to include them in the formal financial system. to reshape the financial system, we will leverage on digitization, to make it more responsive to the broader economy, transforming it so that no one is left behind. we encourage digital innovations and fintech solutions through an enabling regulatory environment while raising the bar for guarding against cybercrime and related risks. with digital innovation and fintech, the reach of financial services in the country will expand and at much lower cost, benefitting consumers and providers alike. we launched the national retail and payments system, which aids the rise of digital innovation and fintech. with nrps, electronic fund transfers from one account to any account will be possible, thus easing payments and financial transactions. we intend to achieve greater financial inclusion through further liberalization of our branching guidelines and the introduction of basic deposit accounts. further, we are closely working with the national government for the adoption of a biometric - based foundational id system. these proposals intend to broaden financial access points and will bring millions of unbanked to participate in the digital finance ecosystem. third, working with the environment this morning, i understand that finance secretary carlos dominguez and other ministers talked to this group about the government ’ s massive infrastructure program and the tax reforms being pushed to fund the huge investments necessary to fund the program. i am pleased to inform that with these national government initiatives in mind, the bangko sentral ng pilipinas has lined up additional game - changing financial sector reforms in the medium - term. last august, the bsp, together with the department of finance ( dof ), securities and exchange commission ( sec ) and bureau of the treasury ( btr ), presented the capital market roadmap to hasten the development of the domestic debt market. the initial phase will focus on improving benchmark markets as this is critical in pricing risk assets and other capital market instruments. the reform package aims to : ( 1 ) increase the volume of treasury bills, ( 2 ) provide a transparent mechanism covering the issuance of government