In response, governments around the world have undertaken a variety of far-reaching regulatory reforms that, I would argue, can be grouped into three categories: those intended to strengthen institutions; those aimed at strengthening financial markets; and those that take steps to reinforce and, in some cases, build new market infrastructures.
The impact of a digital euro on the financial system  Conversely, these dynamics mean that the absence of a digital euro could make Europe more vulnerable to international developments: widespread adoption of digital currencies by foreign central banks could make the European economy and financial system more sensitive to shocks from abroad.