•  Authorities have already taken significant steps to design a regulatory framework that could stimulate innovation while preserving financial stability. The European MiCA regulation is a necessary first response to regulate the use of crypto-assets and it needs to be implemented as soon as possible. However, let me stress the MiCA regulation is not an end in itself but rather the start of a process. Our regulatory framework will need to be adjusted on a regular basis to keep up with the development of DeFi. •  In addition, these responses from public authorities need to be coordinated at the international level, to avoid arbitrage across jurisdictions. International bodies have a central role to play in coordinating responses, notably the BIS and the FSB, but also the IMF and the OECD. Page 2/3  My third takeaway is that central banks could accompany usefully the tokenization of finance, by leveraging new technologies to provide central bank digital currencies, thereby improving the efficiency of securities settlement and payment systems. •  The discussion showed that this possible positive impact is not confined to retail payments. o A wholesale CBDC directly integrated on DLT could be used to settle tokenised assets, bringing the security of central bank money. In addition, a wholesale CBDC has the potential to improve cross-border payments. o But we need to properly measure the economic impacts and the associated risks. That is why we are working on it step by step, including through experimentation with private actors.
Lars E O Svensson: Flexible inflation targeting – lessons from the financial crisis Speech by Mr Lars E O Svensson, Deputy Governor of the Sveriges Riksbank, at the workshop “Towards a new framework for monetary policy? Lessons from the crisis”, organized by the Netherlands Bank, Amsterdam, 21 September 2009. I am grateful to Claes Berg, Ylva Hedén, Jonas Niemeyer, Virginia Queijo von Heideken, Annika Svensson, Ulf Söderström, Staffan Viotti, Anders Vredin, Karl Walentin and, especially, Björn Lagerwall, for comments and help with the speech. The views presented here are my own and not necessarily those of other members of the Riksbank’s executive board or staff. * 1. *  *  Introduction  The financial crisis has raised some questions regarding monetary policy and how it should be conducted in relation to financial conditions such as credit growth, asset prices, imbalances, the risk of creating bubbles and so on. I will discuss two particular questions: Has monetary policy contributed to the conditions for the crisis? Do the lessons from the crisis justify any changes in the way best-practice monetary policy should be conducted? I will lay out my pre-crisis view of best-practice monetary policy – flexible inflation targeting – and its relation to financial stability and asset prices, discuss the role of monetary policy in possibly contributing to the current financial crisis and, finally, present my conclusions on whether flexible inflation targeting needs to be modified in the light of the crisis. 2.