, we started elsewhere : considering the gains for consumers, and, not least, the economic, financial, legal, operational and competition issues involved. agustin carstens'interview with adam posen ( piie ) : https : / / www. bis. org / speeches / sp210331. htm. central bank digital currency in denmark? https : / / www. nationalbanken. dk / en / publications / pages / 2017 / 12 / central - bank - digital - currency - indenmark. aspx. page 3 of 5 how will denmark be affected if other central banks provide access to a retail cbdc, that is : central bank accounts for consumers and corporations? the answer is that this depends on the design of the retail cbdc. if we're talking about a product with an account threshold of 3, 000 euro and with restrictions on non - residents, the effect will be negligible. if, on the other hand, there will be access to unlimited accounts at the ecb for both danes and euro area residents, including large corporations and pension funds, the effect could be substantial, but this seems unrealistic. this would hardly be a problem at present, but potentially greater capital movements must be expected, for instance during periods of pressure on the danish krone. i will conclude with some headline comments on what danmarks nationalbank perceives as being the main challenges in the payments area – challenges we are devoting substantial resources to addressing : • the greatest challenges are undoubtedly security and stability, including both the risk of cybercrimes and it system failures due to technical factors. we engage in extensive collaboration with the sector, public authorities and other central banks in this area. we chair and provide secretariat services to fsor10, perform tiber tests11 and chair the danish payments council. we're working to integrate technical crisis response and the resilience underlying our role as provider of online banking services to banks in pan - european system. • • • we launched instant payments relatively early in denmark – giving us an edge we should maintain. handling anti - money laundering rules and customer knowledge requirements present a great challenge, both for banks and public authorities. vast resources are being devoted to this area, and the results may not justify the resources spent. we have tried to contribute by developing an advanced digital system that helps to better target joint efforts in this area through detailed payment information. cross - border payments still leave much to be desired,

likely, the net impact of taxes and subsidies is close to zero. the absence of any significant carbon pricing has implications. first, it will be significantly more difficult to cut emissions in the absence of spectacular technological advances, which we yet have to see. second, in addition to the cost implied by physical effects of climate change – such as flooding and droughts – the economic cost of mitigation will be substantially higher than if driven by price incentives. regulated energy and emission standards have a significant potential, but are less efficient. third, we have to hope, if we do not promote, that technological advances have a climate - friendly bias. this may well have been the case in recent years as the costs of renewable energy and energy savings have come down substantially and are now competitive. but many of us underestimated the technological advances also taking place in the extraction of fossil fuels, such as shale gas and deep water drilling. as regards financing, climate - friendly investments would have been more attractive in a world of appropriate pricing and regulation of carbon. the absence of such policy action implies that we cannot expect financing to deliver as much as we would like. attracting financing on a large scale requires a strong enabling environment. investors seek the highest risk - adjusted return. but the 1 / 2 bis central bankers'speeches financial sector and financial authorities can and should nevertheless complement the fight against climate change, also with current public policy settings. what are the opportunities from the financial sector perspective? first, lots of profitable climatefriendly investment projects exist already. some on a large scale. in my country of origin, denmark, we have numerous encouraging examples of companies and institutional investors contributing to and benefiting from the transition to a low - carbon economy – both at home and abroad. others on a small scale ; simple efforts to save energy in households and firms. note that the low interest rate environment has shifted the investment balance in favour of upfront efficient capital and against outlays for energy year after year. second, the financial sector has to care about reputational risks. it will get questions from customers and the media. banks begin to check companies for their esg strategies before lending, out of concern for both risks and reputation. third, the financial sector should prepare for potentially stronger climate - friendly policies set by governments down the line. obvious and profitable climate - friendly investment needs often exist in areas of the world with difficult physical, economic or regulatory environments. such barriers can be reduced with technical assistance. these are