the euro area or france in particular, even though we remain on our guard. there is a good reason for this solidity : more solid fundamentals, but above all two inseparable pillars - effective regulation, coupled with proactive supervision. basel iii regulations apply in full to all european banks, but only to 13 banks in the united states. therefore, the priority is not to keep reworking basel iii requirements – and delaying their application – but to apply them everywhere and as quickly as possible. in a nutshell, more basel iii now, rather than some hypothetical delayed basel iv. in this regard, i welcome the recent compromise as part of the trialogue process on the transposition of basel iii into eu law and i hope it will now be formally adopted as quickly as possible. moreover, we await the next us package with great interest. an astute observer might object : why did credit suisse fail if it met the basel requirements? the answer is simple : while good regulation is necessary, it is never sufficient. a highway code - regulations -, even the best one in the world, will only be effectively enforced if the traffic police - supervisors - are efficient. this proactive supervision is one of the great successes of our european banking union. as part of this proactive supervision, we will obviously continue to keep a close eye on the risks affecting the financial sector. we just published our assessment of risks to the french financial system at the end of june ii and it reiterates our confidence in the solidity of french banks. nevertheless, we will continue to be even more vigilant to the risk of a disorderly market correction which could affect non - bank players most exposed to leverage and liquidity risk. the second reminder came in the crypto - asset sphere with the " crypto winter " punctuated by a long series of shocks : the collapse of terra - luna, the failure of ftx, and the legal proceedings taken against binance and coinbase in the united states. europe was a pioneer in this area by adopting mica regulation. meanwhile, the ecosystem continues to develop and we will probably need a mica 2. first, to deal with concerns over " crypto conglomerates ", involving page 3 of 6 multiple subsidiaries with diverse activities and geographical locations : the ftx collapse has demonstrated that it is not enough to regulate a single sub - entity in a single jurisdiction. in my view, these conglomerates could be subject to transparency obligations – particularly

as a portal for an ongoing and constructive dialogue on innovative products and services. the innovation hub is open to new firms as well as incumbent institutions. it is also an important milestone that enables the cbc to achieve its supervisory objectives and priorities relevant to digital operational resilience and cybersecurity. let me now conclude. digitalisation is transforming society in ways that would have been difficult to conceive only a few years ago, with profound effects expected in the near future on the way banking and payment services are offered. emphasizing transparency and efficiency is 4 / 5 bis - central bankers'speeches crucial, while shaping an ecosystem where ease of use, transaction speed and costeffectiveness are priorities. at this significant turn of history, both the central bank of cyprus and the ecb are acting promptly and proactively, in order to ensure that that they are well poised to embrace the future. 5 / 5 bis - central bankers'speeches