As I mentioned earlier, the areas of core reform—capital, liquidity, stress testing, and resolution—have produced a stronger and more resilient system and should be preserved. We have made great progress, but there is further work to do. Some clear improvements are in the offing in the relatively near future. Other areas will benefit from longer term discussion.
One of the key questions is whether VCs could become a settlement asset in payments and settlement services or be used in the clearing domain. Existing standards for FMIs, for example, refer to the usage of “a settlement asset with little or no credit and liquidity risk12”.