in the medium - term due to the regulatory evolutions it implies. as a first pragmatic step, for host supervisors, it is necessary to establish an intermediate holding that consolidates all financial activities, in order to submit systemically important players to requirements. agustin carstens elaborated yesterday on the " segregation " and " inclusion " approaches. in addition, regulation of big techs in finance should go beyond traditional regulation of finance. let me explain : big techs pose at least three new challenges. that of competition - as they are already much more concentrated than existing financial institutions, and the network economy tends to establish " the winner takes most " rule. that of data protection and privacy, of course. and finally, that of operational risk and cybersecurity. however, in each of these three fields - competition, data protection and cybersecurity - there is no international body, unlike in finance. and the national - or european - authorities that do exist are still hardly used to cooperating with each other. to develop cross - border and cross - domain cooperation, the scope is wide but essential : the oecd, the bis and the fsb can and must be sandboxes. as a beacon of hope, europe is showing the way on all these common challenges. europe now stands out as a spearhead on key issues, thanks to : its regulation on digital operational resilience ( dora ), which will submit critical service providers to direct oversight, and will enhance our financial system's cyber resilience and financial data protection ; its regulation on markets in crypto assets ( mica ), which is tailored to new players and assets and needs to be implemented as quickly as possible, that means quicker than the presently planned november 2024 ; last but not least, the digital markets act ( dma ) will cover competition issues, and the digital services act ( dsa ) will regulate online contents. in their own way, each one of these two new regulations enshrines a principle full of common sense, i. e. what is forbidden in " real life " is also forbidden for companies that operate online. with this new legislation, europe is creating a climate that is more conducive to the emergence of european players in the technological field. we can only hope, in the interest of global competition, that they will be able to grow and reach critical size. 3 / 5 bis - central bankers'speeches the eurosystem is also taking part

francois villeroy de galhau : big techs in finance - a bildungsroman that is far from over speech by mr francois villeroy de galhau, governor of the bank of france, at the highlevel bis conference " big techs in finance – implications for public policy ", basel, 9 february 2023. * * * ladies and gentlemen, it is a pleasure for me to introduce the second day of this bis high - level conference on big techs in finance. while it is a pity to do so from a distance, perhaps that is fitting for a conference on the changes in our working lives brought by digital innovation. very early on, big techs saw finance as a natural complement – and booster – to their core businesses, launching a technological revolution that might bring many benefits to consumers, across different fields such as payments and stablecoin issuance. big techs have met with success on some of these roads, and less so on others. interestingly, some of these developments do not exactly match what we could have expected even four years ago. we can therefore consider big techs'entry into finance as a bildungsroman – a sort of coming of age story – with promising early years and somewhat disappointing learning years partly behind usi. building on this already significant experience, the maturity years may be ahead of us – but that will only be possible under consistent conditionsii. i. big techs and finance : a bildungsroman unfolding under our eyes a. promising early years from the onset big techs were " data rich " and benefited from a global customer base and strong brand recognition. in order to keep their lead in innovation, big techs acquired a large number of start - ups and fin techs. in the end, their huge financial means enabled them to set up, and then consolidate, powerful oligopolies. in the wake of us gafams, chinese batx emerged to serve their domestic market, and expanded into asia. all big techs started diversifying their activities, among others in the financial sector where they first launched innovative digital means of payments, for instance google pay in 2011 and apple pay in 2014. this chapter of the book is crystal - clear : big techs were highly successful in this area. digital / mobile wallet payments represent around 27 % of e - commerce payments in europe, 36 % in india and 69 % in asiai. not only do payments feed into