the procyclicality can be trimmed through prudential regulation but i strongly believe that our first line of defense against procyclicality should be the accounting framework. i therefore support the current focus on reducing the scope of the mark - to - market approach and moving from an incurred loss model to a forward - looking model for provisioning. conclusions to conclude, the main challenge ahead of us is to find the right balance between all these measures and the short - run effects of the rebalancing. if the rebalancing process happens too fast, it might weaken the recovery ; but if reforms are delayed too much, the longer - run growth prospects will be affected negatively. one very important issue to focus on while analyzing this trade - off is that policy decisions need to be perfectly coordinated across countries. the crisis has demonstrated that it was necessary, and that it was possible. i am confident that the g20 roadmap is the right approach to this coordination problem. we will, under the french leadership of the 2011 g20, pay due attention to the smooth implementation of this process.

denis beau : stablecoins - a good or a bad solution to improve our payment systems? opening address by mr denis beau, first deputy governor of the bank of france, at the stablecoin conference “ which ambitions for europe? ”, organized by paris europlace and consensys, paris, 15 january 2020. * * * i would like to thank valerie fasquelle and christian pfister for their contributions to this speech. ladies and gentlemen, the growing number and forms of crypto - assets in our payments landscape has triggered a significant and important debate about their virtues and risks, in case the role of these cryptoassets in our payment systems were to become less marginal than it currently is. the emergence of so - called “ stablecoins ” has brought additional fuel to this debate as they could bring to the market new settlement assets and payment schemes, which may compete against and possibly, according to their promoters, replace those in commercial and central bank money, currently at the centre of the functioning of our payment systems. in order to share with you a few thoughts on this debate, speaking as a central banker and a supervisor mindful of the benefits of innovation but also of the risks they could bring to financial and monetary stability, i will focus my remarks on two topics : whether stablecoins can contribute to improving our payment landscape? how to respond to the public policy challenges they raise? 1 – are stablecoins a brand new solution or a brand new problem? from my perspective, they can be both. let me explain. due to their specificities, stablecoins are a novelty in tune with some markets ’ needs. in the context of the economy ’ s digitalisation, the past decades have shown how fintechs as well as bigtechs have aimed at taking advantage of the latest advances in web - based technologies, notably blockchain, to provide new payment credit and investment services. often, they propose to achieve this through the creation of various new assets ( coins, tokens, stablecoins, with or without smart contracts ). we all have in mind the first generation of crypto - assets such as bitcoin and ethereum, initially designed to be instruments of exchange in the digital world but suffering from a number of limitations, not least severe price volatility and a lack of guarantee of their convertibility and security. a second generation is emerging in the form of « stablecoins », such as the jp morgan