analyze and understand today's financial innovations and evaluate their implications for welfare and policy. this year's workshop continues in that innovative spirit, keeping an eye on the future of money and banking. the papers to be presented span areas including decentralized ledgers, exchanges for crypto assets, and the impact of certain protocols on financial stability. researching these new technologies helps us deepen our understanding of the implications for the broader financial system. an important point to remember this week is that no single field of study can give the answers to all of the big questions we face relating to the evolution of money and banking. commingling of insights and techniques from monetary theory, finance theory, and other fields is vital in studying the complex interactions of modern financial systems. of course, it is also important to test our theories with available data, and many papers we will see this week deliver on that count as well. without further ado, let's get started. i hope you have a great week of engaging discussions, and i'm sure we will learn a lot from this year's workshop. 2 / 3 bis - central bankers'speeches 1 the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. 3 / 3 bis - central bankers'speeches

effect, establish a cross - firm, horizontal perspective as an ongoing organizing supervisory principle. this new approach will have a macroprudential dimension as well. to advance both macroprudential and microprudential goals, we are instituting a quantitative surveillance mechanism ( qsm ) for large, complex financial organizations. the qsm will use supervisory information, firm - specific data analysis, and market - based indicators to identify developing strains and imbalances that may affect basel committee on banking supervision ( 2009 ), strengthening the resilience of the banking sector – consultative document ( basel, switzerland : bank for international settlements, december ). multiple institutions, as well as emerging risks to specific firms. periodic scenario analyses across large firms will enhance our understanding of the potential effects of adverse changes in the operating environment on individual firms and on the system as a whole. market discipline has been an underdeveloped policy tool despite numerous ideas put forth over the years. yet it is hard to imagine a practical counterstrategy to the undesirable consequences of too - big - to - fail perceptions that does not include a credible alternative to the current hobson ’ s choice of bailout or disorderly bankruptcy. consequently, most regulatory reform proposals have prominently featured a special resolution mechanism that would raise the real prospect of losses for investors and counterparties of even the largest failing institutions. at present, of course, the law provides the fdic with authority to resolve failed insured depository institutions, but there is no parallel authority for the holding companies of which these banks are a part or for other systemically important financial firms. regulatory reform : the ongoing debate the rough consensus around the reform elements just described has hardly meant an end to the debate for at least three reasons. first, as already noted, there is considerable continuing disagreement over the key features of some of these proposals, even when the basic idea is accepted. the significant differences over the best form of resolution mechanism provide one example. second, as also mentioned earlier, some ideas that may be promising ideas in concept – such as special charges calibrated to the systemic importance of a firm – are not easy to develop and put into practice effectively. until more - detailed proposals are generated, judgments on the likely efficacy of these ideas will obviously be difficult to make. third, many participants in the public policy debate who would agree with some form of this consensus agenda nonetheless believe that it falls short of what is needed to ensure financial stability. those who believe