specificities of decentralised finance and pay a particular attention to the three layers ( blockchains, applications and access gates ) that schematically constitute defi. first, we should evaluate the resilience of the blockchain infrastructure supporting defi. that leads to an open question : can public blockchains provide the right level of security, and if so, how? second, we need to address the security of the applications, on which defi " services " are provided. a logical avenue for regulation would be to define the perimeter of protocols that are deemed " secure ", i. e. whose computer code has been certified. of course, this leads to many subsequent operational issues that deserve careful analysis. 2 / 4 bis - central bankers'speeches third, we should regulate access to defi, in order to protect users, and in particular individual customers. intermediaries – or " access points ", whatever their form – who provide access to defi should comply with rules of good conduct, and be subject to a duty of care and advice as well as kyc requirements, when necessary. to contribute to the reflection, we are about to publish a discussion paper on the possible regulatory options for defi. in order to build the most appropriate framework, taking notably into account the question of proportionality, we need to feed our thinking with input from all stakeholders : financial services or crypto - assets industry professionals, it specialists, academics, other regulators and supervisors - that is why this document will be open to a wide consultation and i look forward to listening to your reactions on it. 2. the second axis is to use defi innovation to serve the possible development of tokenised finance and to improve cross - border payments our monitoring of defi is not just motivated by financial stability risk but also by our intuition that its innovative potential could serve the development of an ongoing trend : the tokenisation of finance. to do so, central banks and the traditional financial players need to understand how defi operates and master its innovative aspects in order to use them in a secure way to do something else than speculate on crypto - assets. this is what we are trying do with the project mariana, our ongoing experiment with the mas, the swiss national bank and the eurosystem, singapore and switzerland bis innovation hub centres. basically, we are building an automated market for the exchange of cbdcs based on a concept imported from defi. this project is really at the crossroads

- maybe you will soon join one of them, once you have graduated from your engineering school - are profoundly transforming the latter. they offer a wide range of services, particularly focused on cryptoassets. i would like to remind you in passing that the term " crypto - currency " is misleading and often used incorrectly, as no crypto - asset currently fulfils the three functions of money, i. e. a medium of exchange, a unit of account and a store of value. this crypto - asset market has grown exponentially since the covid - 19 pandemic. however, in 2022, the succession of spectacular crises including the collapse of the ill - named ( algorithmic ) stablecoin terra usd and the collapse of the ftx platform, brought to light the vulnerabilities of this emerging ecosystem and the nascent bridges between crypto - assets and traditional finance. the collapse of ftx led to the bankruptcy of two banks - signature and silvergate - while, conversely, the failure of the silicon valley bank threatened the deposits of circle ( the usd coin issuer ) which were placed there. some of these vulnerabilities are specific to the crypto sector, such as the high volatility associated with the lack of economic fundamentals underlying some cryptoassets ; others are shared with the traditional financial system, such as operational risk and in particular cyber risk. all of them may jeopardise the stability of the financial system as a whole. how then should these new players be regulated? 2. 2 the existing framework - europe is leading the way thanks to dora and mica the european regulatory authorities reacted swiftly to regulate the new risks that big techs ’ inroads into the financial sector carry, with the digital operational resilience act ( dora ) on operational resilience, and the digital markets act ( dma ) on fair and non - discriminatory access to platforms. dora in particular represents a major and innovative step forward, with the establishment of an oversight framework for monitoring third - party service providers that are identified as critical for european financial institutions. these providers shall be required, under possible on - call duty, to collaborate with client institutions to enable them to comply with their own obligations in terms of it security and business continuity. as regards crypto - assets, although the size of the ecosystem remains relatively small to date, which limits the contagion effects on traditional finance, the instability of the sector shows