too far : as i have already made clear, many fintech innovations hold tremendous promise for improved security and speed of transactions and, importantly, financial inclusion. but it makes the point that central bankers have conservatism, and with it scepticism, ingrained in our dna. this is how it should be. not least, together with our co - regulators, non - bank financial institutions regulatory authority, the financial intelligence agency and botswana communications regulatory authority, we act and serve public interest ; collectively and in our respective statutory roles, are responsible for alleviating system - wide risks that are not always so readily appreciated by individual operators. as a case in point, measures to combat money laundering and other forms of financial crimes are undoubtedly inconvenient at the individual level. but this would be nothing compared to the inconveniences that would be experienced if international sanctions were imposed against botswana for falling short of the required minimum standards on anti - money laundering and the combatting of the financing of terrorism. that said, central bankers must also do their part to avoid the risk of what might be termed “ reckless conservatism ”, and embrace opportunities that not only meet customer needs but also, in many instances, reduce systemic risks. chairman of bsel, director of ceremonies and distinguished ladies and gentlemen, i thank you for your kind attention.

further. the sustainable development of financial markets is supported by macroeconomic and financial stability. botswana has been lauded for its strong macroeconomic environment, a position which was recently reaffirmed by the 2018 global competitiveness index. the macroeconomic environment was the best performing pillar for botswana, with the country ranked first, globally, supported by a public debt to gdp ratio of 15. 6 percent and inflation of just about 3 percent. to further support financial markets development, the bank has recently initiated important changes in the communication of monetary policy, including the launch of the inaugural monetary policy report ( mpr ) on september 9, 2018 at national business conference in francistown. and on monday, this week, the bank published the second mpr following the monetary policy committee meeting of october 22, 2018. but, important as these developments are, neither observations address the key issue. that is, how can central banks deal with the problem developments in financial that, services at that some are point, otherwise legitimate and desirable may be held back, discouraged, or even halted by over -, or outdated, regulation? here, i would highlight two distinct risks that must be addressed : first, the nexus between prudence and innovation may prove to be a challenge and too often financial sector regulators favour the status quo which, in turn, almost inevitably works to frustrate radical, but beneficial innovation. moreover, this risk may be amplified by lack of appreciation for trends in modern technologies ; second, there is also a danger that the regulators overcompensate against this risk, by adopting too lax an approach, and welcoming all kinds of start - up entities so as not to stifle innovation. this may be aggravated in cases where more than one regulator has an interest, a situation which calls for greater collaboration, proper coordination and effective communication. navigating these risks remains work in progress, with central banks across the world adopting a wide variety of approaches. from my perspective key elements of a robust approach by central banks should include the following six elements : first : clear leadership, guidance and consultation on the desirable direction for the development of the financial sector, including reforms to the regulatory environment. for this reason, the bank of botswana strongly advocates the updating of the financial sector development strategy, which is now two years past its end date of 2016. in terms of consultation, the banking committee, botswana financial markets committee and the recently established financial stability council, provide important channels for consultation. second : leadership through advocacy and by