payment services – and even more when it comes to payments abroad. a digital euro would be a major step forward in this context. it would provide a standardised digital means of payment for day - to - day transactions throughout the euro area. despite the need for a more integrated payment system, we are determined to prevent the eurosystem's footprint in the european financial system from becoming too large. we are therefore planning to issue a digital euro, but not to distribute it. this means that banks and other payment providers should assume the role of the cbdc interface between the eurosystem and the customers. the euro area currently consists of 20 member states, each of which has its own banking system with its own unique features. against this background, i am sure you can imagine the overall complexity of our task. therefore, our current focus is on making the digital euro accessible for all users within the euro area. we are investing great effort in our work on this, and we are constantly explaining what we do and why we do it, not least because a number of people are sceptical of cbdcs. 3 / 5 bis - central bankers'speeches once we have accomplished a digital euro for all users within the euro area, it will, in my view, be worth considering making it accessible to users outside the euro area as well. rules for geographical access to a digital euro will be set down in legislation. if european legislation allows, access to a digital euro can also be granted to consumers and firms in the member states of the european economic area outside the euro area. selected non - eu countries can be included as well. 7 ideally, the d€ would be interoperable with other cbdcs from the very start, for example, for person - to - person payments or commercial payments from or to firms outside the euro area. however, this is currently a vision for the future, since, as already mentioned, we first have to overcome numerous challenges to establish a retail digital euro that works within the euro area. 4 concluding remarks let me conclude. so far, cbdcs are newcomers to the world of payment systems. we can only estimate how large a role they will end up playing in payment transactions. this is all the more true when it comes to cross - border payments. the scepticism about cbdcs in many quarters is not uncommon for many technological innovations. for example, in the early 1980s, " computerphobia " was a widespread phenomenon. 8

cash and digital currencies from a central bank ’ s perspective keynote – payment asia summit 22. 11. 2019 | shenzen, china | johannes beermann 1 introduction 2 cash as an independent means of payment 3 retailing – the source of future transformations? 4 cbdc as a cash substitute? 5 conclusion 1 introduction good morning ladies and gentlemen, it is my great pleasure to take part in today ’ s proceedings. considering the topics covered in the sessions to follow, you may consider me the " odd one out ". after all, as the member of the executive board of the deutsche bundesbank responsible for cash management, i arguably very much represent what many of you may consider the “ old world of payments ”. • a world in which there is limited space for innovation and progress. a world that is generally high in risk but low in reward. • that is what is often claimed, at least. in giving you my european and my german perspective, in particular, let me tell you : this case is not as straightforward as it may seem. in germany and the euro area at large, the circulation of cash remains on the rise. • the bundesbank has issued more than half of the value of euro banknotes currently in circulation. • handling and distributing cash is a major operational task performed by national central banks in the euro area – particularly the bundesbank. this also means that we need to continue investing in our cash infrastructure. cash serves various economic functions – making payments is just one of them. • our estimates suggest that roughly one out of ten banknotes issued by the bundesbank is used for making payments in germany. • this limits the size of the pie that is up for grabs by the various non - cash payment alternatives. let us focus on cash as a payment instrument nonetheless. • usage of cash as a means of payment is declining – this is true both internationally and in germany. • but the level of cash usage is still high in many countries – and especially so in germany. • there may be less cash around, but we are far from being cashless. so why is it that, as of yet, physical cash has not disappeared beneath the waves in the vast ocean of digital payment methods? 2 cash as an independent means of payment ladies and gentlemen, in my view, this has to do with the special features that cash offers. we regularly monitor payment behaviour in germany to understand households ’ motives for using particular forms of payment over others. protection against