the underlying infrastructure should be future - proof in design, allowing for technological progress and innovation. for instance, we have developed a prototype for the back - end system of the digital euro based on tokens, more like a “ digital banknote ” rather than a bank account. in the longer term, this might also open up opportunities for token - based applications in the industry. in the long run, cbdcs could also help to facilitate cross - border payments. in this field, the sarb was among the first to explore the potential of wholesale cbdcs for improving cross - border payments. in project dunbar, [ 6 ] the sarb, along with other central banks and the bis innovation hub, investigated the potential of a multi - currency cbdc platform that could enable international settlements using digital currencies. it could facilitate crossborder transactions between financial institutions using different currencies, with the potential to cut costs and increase speed. in this context, the work of the g20 as well as the g7 on interoperability of cbdcs is of utmost importance as well. only through a collaborative approach can we harness the full potential of cbdcs, mitigate potential risks and ensure their compatibility with existing financial systems. 3. 4 a solid legal framework a solid legal framework will also be vital. the european commission two days ago presented a long - awaited legislative proposal. one aspect is that a digital euro would also be given the status of legal tender. in my view it is important, that there is a level playing field between a digital euro and cash. ultimately, the legislative side of the digital euro and the ecb project are highly interdependent. to be absolutely clear : we will only issue a digital euro with firm backing from european legislators. but political consensus alone is not enough. acceptance can perhaps be mandated, but usage cannot be forced. therefore, it is societal consensus that is crucial. 3. 5 collaboration of all stakeholders this brings me to the last item on my ingredient list : the bundesbank and the eurosystem as a whole are in dialogue with all relevant stakeholders. we strive for maximum collaboration and transparency. we involve many societal groups, not just banks and other payment service providers, but also merchants, industry representatives, and consumer advocates. for instance, the eurosystem has set up a market advisory group. this group of professionals from the retail payments market provides advice on the possible design and distribution of a digital euro. the digital

, the “ recipe for success ” for a digital euro contains the following ingredients, or spices if you will. 3. 1 broad usability, without unwanted side effects first of all, we need broad usability, but without unwanted side effects. to ensure its universality, similar to cash, it should be usable in all essential payment situations in modern life. this includes making digital payments in stores and between individuals, two use cases also served by cash. on top of that, we envision that the digital euro will also be used for e - commerce and payments to and from public authorities. however, we want to limit its use to payment purposes. it should not serve as a store of value. in order to avoid possible negative effects on commercial banks ’ balance sheets, we need to put in place restrictions, for instance limits on holdings of digital euros. a holding limit of €3, 000 – which equals around 60, 000 rand – is often mentioned. however, no decision has been made as of yet. this would likely take place closer to the actual issuance of a digital euro. moreover, the digital euro should complement, not substitute, cash or other modern payment solutions, such as instant payments. 3. 2 well - thought - out implementation at the front - end but how should a digital euro be offered : as a wallet and / or a card? a wallet has priority for the initial issuance, but physical cards could also be offered in the future, particularly for those less digitally inclined. in this context, the involvement of private payment service providers at the customer front - end is a must. the eurosystem does not intend to become a commercial bank for 340 million european citizens. instead, we want to leverage the long - standing expertise of the banking sector at the customer interface. we want to preserve the traditional roles in the monetary system, with the central bank in the background and banks and payment service providers at the front - end. we encourage banks and other payment service providers to utilise the digital euro for innovative and value - added services. 3. 3 future - proof concept, enabling new business opportunities this brings me to the next ingredient : a digital euro would also need a future - proof concept that could respond flexibly to future needs and enable new business opportunities. intermediaries could offer innovative services built on a digital euro. that would mean payment solutions could also expand more easily across the entire euro area, allowing smaller players to offer innovative services across europe.