identified in the first whitepaper are valid and that many of them would need new thinking to overcome. while the solution will depend on the precise application, the whitepaper has provided broad advice in areas such as the importance of governance structure and its implications on the level of control and liability acceptable to participants, how a hybrid model of dlt and traditional database may be used to resolve the immutability nature of dlt in the storage of personal data, the limits of smart contracts, and the need of adequate security and controls over the operating environment of dlt. 18. the next step would be for the hkma to work with the banking industry and the fintech community to turn the findings and advice in the second whitepaper into a set of practical guidelines for the use of dlt in the banking sector in the future. given the rapidly evolving nature of dlt, this is no easy task to undertake. we welcome comments and input from the stakeholders and stand ready to share the findings of our research and practical experience with our international peers. conclusion 19. ladies and gentlemen, now is an exciting time for financial innovation. technology is a game changer for the future of banking, payment and other financial services. it will differentiate winners from losers. i am very pleased to share with you today the important progress made by hong kong in cross - border collaboration and the use of dlt applications. as i said in my speech last month, the transformation of our banking system to a new and higher level of smart banking is not just something that is nice to a have, it is a must! to stay relevant and ahead of the game in this new era, i am sure you will agree that the collaborative efforts and research developments that i just mentioned are the essential building blocks to facilitate financial innovation and prepare hong kong to advance to the new smart banking era. 20. finally, i wish you a productive and fruitful time here at the hkma fintech day, and trust that you will benefit from today ’ s rich plenary and parallel sessions. 21. thank you very much. 4 / 4 bis central bankers'speeches

a very strong resolve to do something this time round. there is at present a long list of reform agenda items being debated internationally : these include strengthening financial institutions by requiring them to hold more capital and liquidity ; changing compensation practices to discourage excessive risk taking by bankers and reforming regulatory structures to ensure more effective supervision, especially of large and complex firms that have systemic implications. 5. it is therefore very timely today that we have five very distinguished speakers joining this panel to share with us their insights into this complex and important question of how we should go about reforming the international financial architecture and regulatory regimes in different jurisdictions. they are, by order of their appearance in the programme : ( i ) mr rintaro tamaki, vice minister of finance for international affairs of japan ; ( ii ) dr jong - goo yi, standing commissioner of the financial services commission of korea ; ( iii ) the honourable chris bowen, minister for financial services of australia ; ( iv ) the honourable mr ahmad husni hanadzlah, minister of finance two of malaysia ; and ( v ) professor kc chan, secretary for financial services and the treasury, hksar. i understand from the organiser that we will invite professor chan to speak first as he may need to leave earlier for the legislative council meeting. the order of other speakers will follow the programme. professor chan, please.