##tagion effects from asia, the influence of developments in u. s. financial markets, or home - grown causes. whatever the answer, and the answer may be all of the above, this phenomenon illustrates the interdependencies in today ’ s world economy and financial system. perhaps it was inevitable that the impressive and rapid growth experienced by the economies in the asian region would run into a temporary slowdown or pause. but there is no reason that above - average growth in countries that are still in a position to gain from catching up with the prevailing technology cannot persist for a very long time. nevertheless, rapidly developing, free - market economies periodically can be expected to run into difficulties because investment mistakes are inevitable in any dynamic economy. private capital flows may temporarily turn adverse. in these circumstances, companies should be allowed to default, private investors should take their losses, and government policies should be directed toward laying the macroeconomic and structural foundations for renewed expansion ; new growth opportunities must be allowed to emerge. similarly, in providing any international financial assistance, we need to be mindful of the desirability of minimizing the impression that international authorities stand ready to guarantee the liabilities of failed domestic businesses. to do otherwise could lead to distorted investments and could ultimately unbalance the world financial system. the recent experience in asia underscores the importance of financially sound domestic banking and other associated financial institutions. while the current turmoil has significant interaction with the international financial system, the recent crises would arguably have been better contained if long - maturity property loans had not accentuated the usual mismatch between maturities of assets and liabilities of domestic financial systems that were far from robust to begin with. our unlamented savings and loan crises come to mind. these are trying days for economic policymakers in asia. they must fend off domestic pressures that seek disengagement from the world trading and financial system. the authorities in these countries are working hard, in some cases with substantial assistance from the imf, and the world bank, and the asian development bank, to stabilize their financial systems and economies. the financial disturbances that have afflicted a number of currencies in asia do not at this point, as i indicated earlier, threaten prosperity in this country, but we need to work closely with their leaders and the international financial community to assure that their situations stabilize. it is in the - 4interest of the united states and other nations around the world to encourage appropriate policy adjustments,

the preparation of consolidated financial statements – while the sharing of information between jurisdictions will be essential to understanding their overall organisation as well as interdependencies between entities. the second deficiency concerns the ecosystem of what is often erroneously referred to as " decentralised " finance ( defi ) – what we prefer to call " disintermediated ” finance. the acpr is pioneering thinking in this area with the publication in april of a document that outlines possible regulatory frameworks for defi. the very successful public consultation process ended at the beginning of june. it was widely reported upon and generated almost 40 responses of high technical quality from both french and international players, including " established " players and new entrants. we will be publishing a summary of these responses in the autumn. overall, these contributions confirm our understanding of this topic and the regulatory avenues taking shape on each of the three defi'floors': ( 1 ) ensuring the resilience of the blockchain infrastructure – albeit a public one – through security standards ( 2 ) certifying smart contracts, even if this raises a number of operational issues, and ( 3 ) regulating defi entry points to protect users. so yes to the innovation brought by digital assets and defi - which is, let me repeat, very welcome in paris - but not at the cost of less regulation, which would - as we have seen elsewhere - work against the interests of the players themselves. ii. digitalisation of currency and payments : illustration of innovation partnership approach this brings me to the more forward - looking recipe, which provides a second insight into the dynamic interdependence between regulation and innovation, and between the public and private sector. private innovation is both crucial and irreplaceable but central banks also have creative dna, and many innovations page 4 of 6 are deployed within a partnership framework. money is a perfect illustration. for centuries, the coexistence of central bank and commercial bank money has structured the retail payment landscape. we can all physically pay with central bank money, using cash, or with commercial bank money, using non - cash payment instruments such as cards. however, the rapid digitalisation of payments is leading to a rethink : as we become fully digital societies, should central bank currency be the only thing to remain in paper format? i imagine that two centuries ago, certain people had major doubts about issuing banknotes - a major innovation at the time - alongside gold and silver coins. essentially