claudia m. buch vice - president of deutsche bundesbank experience and evidence 1 speech at the graduation ceremony for master ’ s students of the faculty of economics and business administration at the goethe university frankfurt frankfurt, 7th december 2018 seite 1 von 11 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511 or 3512, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. when you came to frankfurt some years ago to begin your studies, you had many lectures, seminars, exams, and new concepts ahead of you – but also new friendships, new environments and new ideas. today, you have made it and have reached another milestone. you will be looking forward to being able to apply your knowledge to the real world, to not having to sit through any more tedious exams, and – not least – to earning your own money. but this joy is no doubt also mixed with scepticism. compared with just a few years ago, the job market situation will certainly be less of a concern for you. demographic change means that you are all desperately needed to take on important tasks in our society. german unemployment is currently at its lowest level since reunification, and it is below the 5 % mark for the first time since the early 1980s ( federal employment agency 2018 ). many economists would call this full employment ( paque 2012 ). but nonetheless, a lot of people are worrying about the future. global conflicts have multiplied, free trade is no longer as much of a given as it was a few years ago, it is becoming increasingly urgent that we seek solutions to the problem of climate change, we are faced with social issues such as a lack of equal opportunities, which could come to threaten our democratic structures. how should society address these issues? is social engagement worth it – or should we retreat into our private lives? what have you learned at university that will help you deal with the challenges of the future? which career decisions are the right ones? i cannot give a comprehensive answer to all these questions, but i would like to sketch how learning and using evidence can help making progress. seite 2 von 11 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main

now. ultimately, however, the decision on the regulatory framework for fees is primarily a matter for you, as european legislators. the first principle is that, as a public good, the digital euro should serve society. we believe consumers should be able to use it free of charge for basic day - to - day purposes. second, intermediaries should be compensated for the services they provide, just like they are for other digital payments. third, legislative safeguards should prevent merchants from being overcharged by intermediaries if they are obliged to accept digital euro as legal tender. while we believe that the digital euro would allow for more competitive fees, this principle would ensure that fees for merchants cannot exceed the current levels for comparable means of payment. finally, the eurosystem would bear its own costs, for example for settlement [ 21 ] activities and managing the common standards for making and receiving payments in digital euro. this would reflect the public good nature of the digital euro and follow the same logic that currently applies to cash. the savings that arise from the eurosystem covering its own costs would ultimately benefit the end - users. the path ahead let me conclude. the design of the digital euro and its regulatory framework are key to ensuring that it retains its key characteristics as a public good. it will then be european legislators to decide whether the digital euro will be an inclusive, truly european means of payment – widely usable and accessible across the entire euro area, free for basic use, and offering the highest levels of privacy. the success of a digital euro will be in your hands. the ecb stands ready to continue discussing all these issues with you during the legislative process. throughout the next project phase, which is expected to be launched later this year, we will accommodate any necessary adjustments to the design of the digital euro that may emerge from legislative deliberations. in that phase, we will develop and test the possible technical solutions and business arrangements necessary to provide a digital euro. these two processes – legislative and design – should advance in parallel so we can be in a position to promptly begin issuing a digital euro, if and when warranted. the possible decision by the governing council to issue a digital euro would be taken only after the legislative act has been adopted. we will take all the necessary measures to ensure that the digital euro would act as a true public good. but all european institutions have to play their part to achieve our common goal of making the digital euro a success. this is why we are looking