needs an increased'risk consciousness'and to build up its resources to monitor and mitigate all kinds of financial risk. the fsb's proposals, along with the work undertaken by the standard - setting bodies ( ssbs ), should provide a foundation for greater consistency and cooperation among authorities in the regulation and supervision of crypto - asset activities and markets. until 15 december 2022, the fsb is soliciting comments on its published recommendations. and i encourage you to participate in this public consultation. we want to hear from you, because we want our policy proposals to be as effective and efficient as possible. as you can see, it takes time to develop a regulatory and supervisory approach. but it is not new for regulators and supervisors to have to deal with regulatory catch - up. this is inherent to a landscape that supports financial innovation. nevertheless, the speed of developments in the crypto eco - system, including the recent market turmoil, has given us all the more reason to develop an appropriate and globally consistent regulatory framework. catching up with the rapidly changing environment is therefore our highest priority. a catch - up that strengthens the stability of the financial system. a catch - up that strongly underpins the public's trust in a system that has developed and evolved over many centuries. the bank of amsterdam offers an inspiring example of how financial innovations can advance an economy – and of how things can turn out badly. it is the fsb's goal to learn from the past – and to stimulate innovations that improve the global financial system, while also advancing and protecting its stability. crucial in this regard, is adequate regulation, and supervision, of governance, risk management, and 4 / 5 bis - central bankers'speeches transparency. these are quintessential elements of a well - functioning financial system that passes the litmus test of the public's trust. i trust you are with me on this. thank you. 1 the full history of the bank of amsterdam, and the lessons it carries for the governance of digital money, has been described by jon frost ( bis ), hyun song shin ( bis ) and peter wierts ( dnb ) in a bis working paper ( no. 902 ) : an early stablecoin? the bank of amsterdam and the governance of money 2 i have to credit carmen m. reinhart and kenneth s. rogoff with popularizing this phrase. in their seminal work – " this time is different " ( 2009, princeton university

to be incorporated in the financial system, and to be further advanced. or for innovations to be found flawed and to be cast aside. 1 / 5 bis - central bankers'speeches and it is to a lack of trust that the bank of amsterdam ultimately fell victim. that happened once the bank of amsterdam started doing more than its charter allowed. under political pressure, it moved away from full reserve backing to issuing loans. eventually, it was the combination of flawed governance and a lack of transparency that led to the downfall of the bank of amsterdam. they allowed the bank of amsterdam's management to operate in violation of its founding principles. despite this opacity, it did not take the general public long to figure out the bank's safes were emptying out rapidly. a revelation that led to several severe runs on the bank. the institution never really recovered from this break - down of public trust and was ultimately dismantled in 1820. since then, the public's trust in the financial system has been reinforced by rules and regulations – and, of course, the enforcement of those rules and regulations. whether they deal with governance, transparency or other aspects of trustworthiness. flash forward to today. and today's headlines. crypto - assets, or to be more exact the underlying distributed ledger technologies, are innovations with the theoretical promise of real societal benefits. but, when there is no way to know who is to be trusted in the crypto eco - system, the potential benefits will certainly not outweigh the risks. what i often hear, is " this time is different ". 2 " this time, there is no need for rules and regulation. " " this time, there is no need for supervision. " well, just in the past few days alone, we've been able to see that these times may not be so different at all. and that is no surprise. because the crypto eco - system is not nearly as different from traditional finance as is often proclaimed. many activities in the crypto - ecosystem strongly resemble activities in traditional finance. think for instance about lending, deposit - taking, trading, or insurance, amongst others. and in resembling traditional finance, crypto - assets also borrow risks from traditional finance. these include leverage, liquidity mismatches, or interconnectedness. and going beyond theory : however attractive removing central intermediaries might sound, in practice, distributed ledger technology will come with other costs and frictions – such as significant energy