forward to the european commission ’ s legislative proposal. it will be a decisive step forward for the digital euro and put europe at the forefront of the work on central bank digital currencies among the g7. i now look forward to your questions. 1. see ecb ( 2022 ), progress on the investigation phase of a digital euro, september ; ecb ( 2022 ), progress on the investigation phase of a digital euro – second report, december ; ecb ( 2023 ), progress on the investigation phase of a digital euro – third report, april ; and ecb ( 2022 ), letter from fabio panetta to ms irene tinagli on progress reporting on the investigation phase of a digital euro, 14 june. the first report covers topics such as the transfer mechanism, privacy and tools to control the amount of digital euro in circulation. the second report focuses on the roles of intermediaries, a settlement model, funding and defunding and a distribution model for the digital euro. the third report covers the eurosystem ’ s views on accessing the digital euro, holdings, onboarding, distribution aspects, services and functionalities. 2. see kantar public ( 2022 ), study on new digital payment methods, march ; and kantar public ( 2023 ), study on digital wallet features, april. 3. people ’ s trust in money issued by private intermediaries ( such as bank deposits ) relies on the ability to convert it, on a one - to - one basis, into risk - free central bank money ( such as cash ). see for example central bank digital currencies : a monetary anchor for digital innovation, speech by fabio panetta, member of the executive board of the ecb, at the elcano royal institute, madrid, 5 november 2021. 4. focus groups suggested that people see the ability to “ pay anywhere ” as the most important feature of a new digital payment instrument. this emerged in all countries and age groups. see kantar public ( 2022 ), study on new digital payment methods, march ; and kantar public ( 2023 ), study on digital wallet features, april. 5. panetta, f. ( 2023 ), “ the digital euro : our money wherever, whenever we need it ”, introductory statement at the committee on economic and monetary affairs of the european parliament, brussels, 23 january. 6. see article 128 ( 1 ) of the treaty on the functioning of

why the euro is at this level vis - a - vis the us dollar is that the euro area has recorded large and growing current account surpluses – [ editor ’ s note : forecast at €286 billion for 2014 ]. this is new. before, the current account of the euro area was generally balanced. it is not the case that germany, for example, exports too much, as is sometimes argued, but that euro area domestic demand is weak. from this perspective, the best solution is therefore to support domestic demand by investing, and that is also a way of preparing europe for the future! but, these exchange rate issues go beyond just the european framework. bis central bankers ’ speeches at usd 1. 37, isn ’ t the euro overvalued from a french perspective? france ’ s situation within the euro area is exceptional in that it is the only country, at present, with such a large current account deficit – [ editor ’ s note : €36 billion in 2013 ]. the solution is to increase competitiveness, as foreseen by the government. france has asked for more time to reduce its deficit : does it risk being punished by the markets? europe has high expectations of france, because france is the euro area ’ s second largest economy. the euro area needs a strong france. france also has its own responsibility : to make credible the economic government of the euro area, which it itself called for and which is gradually being put in place. this governance sets out targets for both nominal and structural deficits. as the european commission reiterated, france has already had two extensions. it must live up to its commitments. it is all about credibility and trust. can france manage without the euro? without the european union and without the euro, france would be an average, vulnerable power, over - indebted and with declining productivity. the euro and europe give france protection that enables it to remain in charge of its own destiny, while managing its own reform process. bis central bankers ’ speeches