 Kaj je zelo, da je zelo, da je zelo, da je zelo. vstening se za toj stran. Sveče bo so vsredne, knocked chaini, tkdje pa se všel lebe na vse vacu, na končne tudi se zbogaj poške. sent碳š, že je pomečno da je nekaj to poškodnje, nače se vse več aspezo, ne kaj je za srečenek, tudi se ga poživovati na to, očolega, nače bo poškodni, čak se je vstano ne in za to, pr tools and the necessity of relevance for the financial services industry and that's what I would try to do in my keynote address. So, why this can be relevant for financial markets? Well, the blockchain developed specifically for Bitcoins but the concept of distributed ledger is certainly not by any means limited to crypto-currencies or payments so every system that currently relies on trusted central authorities for the transferring recording of assets ownership could teoretically be replaced by a distributed, by a distributed in the centralized system such as distributed ledger. So why blockchain is such an attractive concept? Well, basically with the blockchain you can see who had something, who owns it now. You have the fact that the parties involved actually committed to each other electronically and signed it with cryptology to ensure that it was authorized. So you could see all these things and more importantly you can do all these sort of things digitally. So this will all happen in a very short time frame compared to the current time allocation that is needed for such type of operations. So one of the first benefits that is very often discussed is transparency. So this brings transparency all over the system. But there are other important points and one of those was certainly mentioned already by John and that's about the distribution of information. So currently as the system is built, you have multiple information, so multiple set of the same truth or of the same story. So basically you will need to reconcile all those informations every time. So one operator will have to reconcile the same information and check if the information is the same with the other operator. So you have, well, this takes a lot of time, it takes quite a huge effort and a huge amount of database information. So one of the things on which certainly a blockchain could help in the financial system is reconciling information. You will have, with a blockchain, you will have one single set of information which is immediately shared and acknowledged by all the party involved in the debate. So this is certainly a big step forward. So the information basically will be kept across multiple servers and there will all be updated simultaneously. So whatever you, the only thing you will need to know with this system is basically checking the blockchain. So this will reduce cost, make things much faster and reduce settlement risk for things like payments and trading. So what is the thing that I see the financial industry can develop as a first thing in the near future? So we are talking here about a new technology which will probably take far longer than we expected to be fully deployed. But there are certain things which I believe can be happening in the short frame and I'm talking about two, five years probably. I think first developments can be happening in what is called the permission at blockchain. So this is basically a closer network of participants where everybody knows each other and allows each other in. They have an exact copy of the distributed ledger data and basically in a private one, so you're just saying you trust everybody which is on the network because you all have agreed to join it so information will be immediately shared among them. So only a limited number of people are given access to the chain but you still have the benefit of the decentralization. So not any more different copies on the system which means identical records will be shared and security, they will all be basically secure because as John was explaining before, the system is quite secure at the moment and the transaction cannot be amended anymore. Now this of course will bring several benefits which the financial sector is looking at and this will be cutting cost, gaining speed again and get security from the process. In a permission ledger in particular, you will solve a lot of the problems which have been mentioned over the last months like the problem with the power needed for doing all of this and the scalability. Of course this all seems very nice and if we say it this way it looks amazing but there are some concerns and clearly the system as it is will still need a lot of work to be fully workable. So first of all there are significant risks and a number of fundamental questions that will need to be addressed seriously. One of those is the confidentiality and misuse of the information. So it is true that the system is fully transparent but I'm not entirely sure that the information that will be available to everybody then could be potentially misused and that's one of the first problems from which we could be worried. Then of course there is the problem of cybersecurity. We said several times that the blockchain is of course very secure, very difficult to be hacked. Is this actually true? Will this actually be possible? Everything can be hacked nowadays so this is one of the issues. So this is one of the issues of a continuously growing network. So the more the network will be growing the more power will be needed, the more difficult this will be to be managed. And here we are talking only about a system which will be used for record keeping. So if we moved on other aspects which is the one that was mentioned several times where trading of security so transferring of security was one place to the other well there the problems will be even more. So before transactor 47 million transactions per second so getting there with the new technology will be quite challenging. Now there are also other issues very important on the regulatory side and that's here where we also, as EBF we are already starting doing some concrete work. So given the substantial efforts made over the past years to make the existing financial system more resilient and more stable I see it very challenging for regulators to now face and deal with the blockchain. It comes out of the blue and basically the blockchain tells us we don't need any more central authority. So I think this would be a kind of big challenge that they will have to deal with this. So I firmly believe that we should not step for innovation as it is with preemptive regulation and the technology is too premature. That's clear at the moment. However at the same time I understand the fact that we will have to follow the developments of this technology and we will have to probably accompany it. So that's why for example we very much support the idea which was mentioned yesterday in the parliament by Mr. Vojvain Sager and then also backed by Hill of creating these task force at commission level. Certainly we hope that this will be an open task force where the industry will be able to participate as is happening now in several aspects at commission level where we can actually contribute to the debate and really understand if there is a need of regulation and where we can intervene. There are certainly aspects that we will need to look at if we want the technology to be fully deployed from a regulatory side, regulation or things which perhaps will block and prevent the developments of this regulation. Then another important aspect is to understand if we want national regulation to be to start developing instead of having a European one. That's another debate and another question that will for later discussion. Then my conclusion, my closing remark is blockchain the panacea that we are all looking at for solving all our needs. Well, I think the straight answer is no, certainly not. But it can be an important factor for the developments of the financial services industry in the coming years. And I believe that the best way to address this technology is perhaps identifying the problem that we want the blockchain to solve. And then once we have found this using the technology, developing the technology and making sure that this can be actually applied to these problems we want to solve. That's a bit what the banking industry is trying to do, I think and certainly we will discuss this more and more over the next months and years.