be an attractive, additional option to improve payments in europe and even worldwide. this summer is going to be a time of decisions, not just in european football, but also in payments : in mid - july, the euro championship final will decide which national team will become the champions of europe. at the same time, the ecb governing council will decide whether to launch an investigation phase for a digital euro project. if the ecb governing council ’ s decision is positive, we do not want to waste too much time. ecb president christine lagarde has suggested a period of no more than four years for the digital euro to go live. 4 some may argue that we have already lost too much time and that a digital euro would come too late. i don ’ t think so. we might already be in the second half of the match. however, as sepp herberger – the legendary national coach who took west germany to victory in the 1954 world cup final – once said : “ the ball is round, the game lasts ninety minutes, and everything else is just theory. ” so there ’ s still everything to play for in european payments. so let ’ s look ahead, let ’ s work together, and let ’ s move forward – swiftly but thoroughly – on the path to building future - proof european payments. 1 bis papers no 114, ready, steady, go? – results of the third bis survey on central bank digital currencies, january 2021. 2 www. bundesbank. de / en / tasks / topics / making - payments - in - 2020 - the - year - of - covid - 19 - card - based - and - contactless - payments - trending - 823592 3 www. ecb. europa. eu / pub / pdf / other / report _ on _ a _ digital _ euro ~ 4d7268b458. en. pdf 4 bloomberg interview with christine lagarde on 1 april 2021. 4 / 4 bis central bankers'speeches

we think. if these forms of money become widely used in the euro area as a medium of exchange or as a store of value, this could have severe implications : for the role of the euro, for the payment industry, and consequently also for financial stability in the euro area. 3 opportunities and challenges of cbdc the three trends i have just outlined show that in an evolving payment ecosystem, central banks need to be prepared. like in football, you need the right forward - looking strategy to succeed. so what opportunities could cbdcs bring? cbdc would be a third form of central bank money alongside cash and bank reserves. cbdcs promise to combine the improved efficiency brought about by digitalisation with the safety provided by a central bank in one single means of payment. 2 / 4 bis central bankers'speeches yet, introducing such new forms of money could have a profound impact on the financial system. particularly if cbdcs were not confined to monetary counterparties – like central bank money today – but were instead made available to the general public – like cash. if it is not properly thought through, this kind of innovation could have unintended consequences. that is why several working groups in the eurosystem are testing possible technical designs of a digital euro and analysing the economic implications of its issuance. there are various challenges that need to be tackled. to name some key aspects : we have to address the risks a digital euro might pose to financial stability and monetary policy. one important aspect to consider in this regard is the role that banks and other payment service providers play as intermediaries in the financial system. other aspects discussed in this context include holding limits. any solution must be sufficiently scalable and secure, in particular in view of increasing cybersecurity risk. and if a solution for paying offline with the digital euro – that is, without an internet connection – was offered, it would have to be set up in a safe and secure way. to ensure acceptance and trust, a digital euro has to be made accessible to all population groups without barriers, but in a safe manner. money laundering and terrorist financing have to be effectively prevented. as you can see, it is obvious that a central bank digital currency must be designed carefully. there are potential advantages, such as safety and efficiency improvements in everyday payments, the availability of new services, and productivity gains due to the provision of money that could be used in programmable environments. but these advantages need to clearly outweig