with an associated material effect on the provision of financial services. notably, this can include innovation by new firms, existing technology firms, and incumbent financial institutions. 2 see frost j., shin, h. s. and wierts, p. ( forthcoming ), “ an early stablecoin? the bank of amsterdam and the governance of money ”, bis working paper. 3 see g7 working group on stablecoins ( 2019 ), “ investigating the impact of global stablecoins. ” 4 see van nieuwkerk, m. van ( 2007 ), “ hollands gouden glorie, de financiele slagkracht van nederland door de eeuwen heen. ” 5 see kindleberger, c. and aliber, r. ( 2005 ), ‘ manias, panics and crashes : a history of financial crises ’ ; schnabel, i. and shin, h. s. ( 2018 ), “ money and trust : lessons from the 1620s for money in the digital age ”, bis working paper no. 698. to restore confidence, the bank of amsterdam started issuing money in the form of bank deposits – the bank guilder. on the liability side of the balance sheet, the bank held current account deposits, with balances rising from 4. 9 million guilders in 1673 to 28. 9 million in 1721. on the asset side, the bank ’ s charter required that deposits were fully backed by precious metals. this boosted confidence, much like current stablecoin proposals aim to achieve price stability by being pegged to a basket of fiat currencies. in his seminal work, the wealth of nations, adam smith noted : at amsterdam, no point of faith is better established than that for every guilder, circulated as bank money, there is a correspondent guilder in gold or silver to be found in the treasure of the bank. the city is guarantee that it should be so. the bank of amsterdam supported payments and settlements across europe for nearly two centuries. it relied on an ‘ ecosystem ’ of cashiers, provided standard contracts and managed operational risks, such as a fire in 1652 – cyber - attacks had yet to be invented. similar to modern wholesale payment systems, the bank was able to bridge differences between outgoing and incoming payments. but in doing so, the bank ’ s management also departed from the strict application of its charter, performing some of the liquidity provision functions

price stability and preserving its capacity to navigate through uncertain economic landscapes. 1 / 2 bis - central bankers'speeches the program of this workshop builds pretty much on this view. in the first session, we start by discussing the importance of central bank capital. then, in the second session, we will discuss how future changes in monetary policy will impact central bank capital. finally, tomorrow in the third session, we broaden the scope to the external environment. we will examine how central banks negotiate with their shareholders, and how risks outside monetary policy, such as financial stability risks and climate risk, affect central bank capital. you all contribute to intellectual capital by sharing your diverse expertise and insights. your contributions help central banks make informed decisions, refine capital policy frameworks, and adapt to evolving financial landscapes, ultimately strengthening the role of central banks in society. thank you. 2 / 2 bis - central bankers'speeches