is why it is important for central banks to 1. move ahead swiftly but thoroughly 2. seize opportunities to share views and experiences and to engage in dialogue with a view to learning from others regarding cbdc, there have already been some insightful discussions between china and germany. one event i remember quite well is the joint pbc - bundesbank conference entitled " fintech and the global payments landscape – exploring new horizons " back in september 2021. cbdc was a key topic discussed by governors and board members from the pbc and the bundesbank. however, the digital euro is not a german idea. it is a european endeavour. october 2021 saw the eurosystem launch its digital euro project. the bundesbank is an integral part of the eurosystem and consequently, fully involved in this project. i myself am a member of the respective high - level task force. as part of this project, we are 2 / 4 bis - central bankers'speeches currently working on issues like the possible functional and technical design as well as the distribution of a digital euro. but we are still in the investigation phase. nothing has been decided yet. the digital euro is not just a matter of mechanics. it is also a political and societal issue. this has consequences. first, we have to aim for close collaboration with governments and parliaments. second, we need to involve the general public in the deliberations on this project. communicating with the public as comprehensively as possible is key. all in all, we have published three progress reports on the project on the ecb's website over the past months, the third one at the end of april. 2 but why is the eurosystem even thinking about issuing a digital euro? at present, the general public in the euro area can only access central bank money in the form of cash. however, we are seeing a worldwide trend towards more and more cashless payments. in china, for example, cashless mobile payment systems have been hugely successful in the past decade. in europe – at least for now – the picture is slightly different, and the use of euro cash is still relatively high. however, if cash use continues to decline, that poses a risk to the availability of secure public money, which is an anchor of trust in our monetary system. a digital euro would then not only be an option but a necessity if universal access to central bank money is to be preserved as society moves into the digital era. with a digital euro

burkhard balz : bolstering confidence, high - quality financial development promoting a chinese path to modernization keynote speech by mr burkhard balz, member of the executive board of the deutsche bundesbank, at the tsinghua pbcsf global finance forum " bolstering confidence, high - quality financial development promoting a chinese path to modernization ", beijing, 20 may 2023. * * * 1 introduction ladies and gentlemen, i am delighted to be able to speak to you today here at the tsinghua pbcsf global finance forum in beijing. as a central banker, i can certainly relate to the conference title, " bolstering confidence ". you see, confidence is a central bank's most valuable asset when it comes to fulfilling its tasks to the best of its abilities. none more so than in times of turbulence, when trust and confidence provide an essential basis. and we are living through turbulent times, there is no doubt about that. rarely has the immediate future been as incalculable und unpredictable as it was over the past three years. following on from the coronavirus pandemic, russia's war of aggression against ukraine has sparked deep uncertainty and sent anxiety levels soaring around the globe. the war poses potentially a threat to the tried - and - tested system of international cooperation and is placing a strain on the global economy. but surely everyone must grasp that the major global challenges we face in our time – first and foremost, climate change – can only be overcome if we pull together. and there are other developments as well which are putting many countries to a stiff test – the digital transformation is just one topic i could mention here. but true to the upbeat conference title of bolstering confidence, let me begin with some comparatively cheery news from germany. 2 economic activity and inflation germany's economy has weathered the fallout from the pandemic and the war better than had been feared for a time. true, the braking effect of higher energy prices in particular made itself felt for a while, and german economic output contracted by 0. 5 % in the fourth quarter of last year. but the current quarter is now expected to see a moderate rise ; real gdp is likely to increase somewhat on average in 2023. the german economy has proven itself to be more resilient and more adaptable than it is often believed to be. but what's far too high right now is inflation. measured in terms of the hicp, consumer