While we have expanded the regulatory scope to address emerging risks in payment developments, regulations are also right-sized to the risks posed. 11. First: As individual e-wallets, how do we keep them safe to use ? When we look at ewallets, we find that they face very similar risks as digital banking products. Firstly, as online services, both are dependent on technology and face cyber risk – so MAS expects them to manage these technology and cyber risks well. Second, they both hold retail customer monies, so they need to safeguard these monies. The differences however, are that an e-wallet is used for day-to-day payments, and so needs to be very liquid to meet customer demands, and ewallet issuers don’t give loans with the float. So it’s important to right-size our regulations to their business model, and not to stifle innovation by loading them with bank-like requirements. Taking these into account, MAS sets out proportionately simple options for e-wallets to safeguard customer monies, for example, holding it as a deposit with a bank. MAS may also prescribe further safeguarding measures in liquid and low-risk assets. Second: Collectively, how do we manage risks that e-wallets pose to the financial system? Our role as central banks is to protect the stability of, and confidence in, the financial 12.  system. To achieve this, we need to develop regulations that, while addressing key risks, do not obstruct the industry developments.
I have mentioned his work outside the academic work to emphasize his extended experience and wholesome view on Europe and the Euro Area. And now, a few considerations about the Euro Area and Romania in the European context: The European financial environment has faced the need for thorough reforms. The financial crisis and the difficulties within the Euro zone have led to rethinking the assumptions behind the Euro zone governance and the links between the European Union’s euro and non-euro member countries. The National Bank of Romania maintains a deep interest in reforms of the EU governance that enhance its strength and resilience, in regional cohesion, nominal and real economic convergence, for the larger objective of Euro currency adoption and Euro Area accession. Euro area accession represents a strategic target for Romania, which needs a healthy economy in order to join it on favorable terms. However, we are facing great challenges with respect to the functioning of the Euro Area and the European Union in general. The euro area is an evolving target, one that changes and transforms overtime and, therefore, we are all asking ourselves what the Euro Area’s future will look like and what we are heading to. Romania can and should play a role in the ongoing debate on the future of the EU and even of the euro area. In this context, I am grateful to André for the opportunity to facilitate this exchange of ideas.