because financial contracts price the future, and that future is about to undergo fundamental change. the fsb ’ s roadmap for addressing climate - related financial risks, which is being taken forward in close conjunction with the ngfs and many other international bodies, aims to ensure that climate risks are properly reflected in all financial decisions. it covers disclosures, data, vulnerability analysis, and regulatory and supervisory approaches. this is important because, as we all know, what gets measured, gets managed. despite the progress made, the challenges are formidable. they range from identifying and collecting the information needed to measure and assess climate - related risks, to designing robust supervisory tools, such as climate stress tests and scenario analysis. because there are no international standards in place yet, not least relating to disclosures, we have an enormous opportunity to get this right from the start. we should not miss it. the changes i discussed – the move to a post - covid world, ensuring safe digital innovation, and transitioning to net - zero emissions – are global in nature, including their impact on the financial system. in order to promote global financial resilience and the smooth provision of finance to the real economy in the face of these changes, we need to continue our successful global cooperation. the fsb is uniquely placed to facilitate this, because of its three key strengths. first of all its broad, diverse and multi - disciplinary membership. the fsb brings together in a collegial spirit of mutual trust senior officials from 71 authorities in 25 jurisdictions, and 10 multilateral institutions, covering multiple mandates across different sectors. this broad membership enables the fsb to take a truly holistic – cross - sectoral and international – perspective on financial stability issues. such a perspective is key to understanding and tackling risks from digital innovation and climate change, which affect all parts of the financial system, as well as understanding system - wide risk in complex financial ecosystems like nbfi. it is also key to avoid regulatory arbitrage and fragmentation. and its broad membership, including the sectoral standard setters, puts the fsb in a position to coordinate effectively. the second strength is the fsb ’ s agility in addressing near - term threats as well as structural changes in the financial system, while keeping sufficient headroom to be able to respond to new emerging vulnerabilities that are detected. this agility was demonstrated at the start of the pandemic, when fsb members exchanged information on market developments and

since 2018. our most recent risk assessment shows that markets for cryptoassets are fast evolving and could reach a point where they represent a threat to global financial stability. i must say i have my concerns about this development. let ’ s take for example all the misnomers that are doing the rounds. unbacked crypto assets suggest all others are backed, which they are not. most stablecoins are neither stable nor coins. decentralized finance is often quite centralized. this leads to misconceptions about crypto - assets, which contribute to their fast growth. the fsb is stepping up to the plate to deliver an effective regulatory approach to crypto - assets. 2 / 4 bis central bankers'speeches we have issued a set of high - level recommendations for the regulation, supervision and oversight of so - called “ global stablecoins ”. also we are continuing to work with the standardsetting bodies to review their implementation and whether any changes are needed. parallel to this, the fsb has started to examine, together with the relevant standard - setting bodies, regulatory and supervisory issues and approaches to address risks stemming from the so - called “ unbacked ” crypto - assets. and we will analyse the financial stability implications of decentralized finance, in order to understand the need for policy action in that area. another feature of digital innovation is the ever - greater use by financial institutions of outsourcing to third - party service providers. while outsourcing may have provided additional resilience during the pandemic, it has also reinforced the importance of effective policies for the oversight of financial institutions ’ reliance on critical service providers. to this can be added the greater exposure to cyber risk. greater interconnections in the financial system increase the surface for cyberattacks, which have escalated during the covid pandemic. enhancing operational and cyber resilience will therefore remain important items on the fsb agenda. next to digitalization, we face the ever - growing threat of climate change. while emanating outside the financial sector, climate change may severely affect financial stability. the financial risks of climate change reflect its particular nature : it is global in its causes and its implications, and it is pervasive, affecting all kinds of financial assets and contracts. for safeguarding financial stability and ensuring the financing needed for the transition to net zero, it is key that climate related financial risk is adequately priced in financial contracts. this is crucial