##hosted wallets, i. e. electronic wallets that enable the automated exchange of crypto ‑ assets without the involvement of service providers, and from the possibility of obtaining financial services through smart contracts, i. e. software made available directly by unregulated entities ( decentralized finance, or defi ). an orderly development of these phenomena cannot happen without setting out standards and practices that can act as a benchmark not only for supervised intermediaries but also for all the other players involved. we are banca d ’ italia the governor ’ s concluding remarks annual report 2021 stepping up the in - depth analyses necessary to enhance the transparency and the reliability of these new forms of financial intermediation, in order to share them with the other supervisory authorities. regardless of the differences among crypto - assets, we must be well aware that even dlt instruments issued by clearly identified entities are private sector liabilities and, as such, are characterized by the risk of insolvency. the only instrument in circulation that is free of this risk is cash issued by central banks. it is on the basis of this awareness that the bank of italy is involved in the work being carried out at eurosystem level to consider the introduction of a digital euro. a digital currency issued by a central bank would represent an anchor for the public ’ s trust in money, which would act as a complement to cash and the existing electronic means of payment as well as to the development of reliable private - sector digital instruments. for this to be possible, the digital euro will have to meet users ’ expectations in terms of ensuring personal data protection, security and ease of use, fostering innovation and accompanying the digital transformation of the economy. a decision on the possibility of issuing it will be taken in the coming years based on the outcome of the work currently underway. innovations such as electronic identification systems and advanced data analysis methods are helping the fight against money laundering and terrorist financing. they make it possible to verify the identity of customers remotely and to carry out in - depth checks on financial flows. at the same time, fintech companies – which often experience a rapid expansion in their operations – sometimes struggle to implement anti - money laundering rules properly. their difficulties are greater when they operate across several markets, for which the sectoral rules have not yet been fully harmonized. the utmost attention must be paid to these risk profiles. going forward, setting rules that are directly applicable across the eu and the introduction of a common

competition triggered by the opening - up of markets. to strengthen growth in italy the italian economy has been recovering since the middle of 2005. growth strengthened during 2006, to an average of nearly 2 per cent, a result that had not been achieved for five years. a similar rate of growth is expected in 2007, despite the slowdown in the first quarter. the recovery has been fuelled by investment and the growth in demand abroad, especially in germany. employment has risen substantially, but still largely in the number of temporary jobs. the italian economy may have shaken off economic stagnation, but its rate of growth is still one of the lowest in the euro area. in the first half of this decade labour productivity fell in every sector, and especially in industry. the disparity in relation to the rest of the euro area indicates slowness in the adaptation of italian industry to the changes in the technological and competitive environment. the recent improvements in productivity and exports, though still modest and largely cyclical, may nevertheless suggest that a process of restructuring has begun. the restructuring of the industrial sector a survey of more than 4, 000 firms carried out in recent months by researchers at the bank provides initial indications that this is indeed happening. more than half of the industrial firms in the sample have changed strategy in the last five years. the 12 per cent of firms that have shifted their product range towards new sectors earned higher than average profits in 2006. one firm in five, almost double the ratio compared with the beginning of the decade, is adopting some form of internationalization, ranging from cooperation with foreign partners, the preferred solution for small firms, to the outsourcing of manufacturing or marketing. in all the firms the importance of investment in product development, design, brands, and distribution and customer - service networks has increased. among medium - sized and large companies the use of new technologies for integrated corporate management is becoming more prevalent and the proportion of better - educated staff is rising ; corporate profits have benefited as a result. profits are also inversely correlated with the age of company leaders, a fact of great significance in the country of family capitalism : firms that have tackled generational changeover report higher average profits. our survey, the many case studies accompanying it and data from other research bodies paint a picture of change, owing partly to a more severe winnowing of firms. according to the chambers of commerce, the number of manufacturing firms deleted from the registers has exceeded new registrations by more than 50, 000 over