union with the euro has not been kept. will the promise ever be fulfilled? trichet : to fulfil this promise, cooperation between the 27 eu countries, and even more so between the 17 euro countries, must be improved significantly. that much is obvious. better coordination of fiscal and competition policy over time automatically creates greater political cooperation. at present each of us has his or her own opinion on the long - term outlook for political union in europe. as a european citizen, i am convinced that we should head further down the path of significantly closer political union. however, this is not one of the european central bank ’ s responsibilities. jean monnet once commented that he was unsure what the european political institutional framework would look like in the future, but was sure that today ’ s improvements would lay the foundations for the european institutional framework of tomorrow. question : do we need a two - speed europe in order to ensure that the tempo is not dictated by those moving forward more slowly? trichet : the european treaties make no such provision. we have to insist on member states moving forward together. however, it is also quite clear that if you share a single currency, you must make much more of a joint effort and cooperate much more effectively on economic policy. question : what are europe ’ s basic values? trichet : europeans are deeply attached to democracy. they are deeply committed to human rights and the market economy. this is fundamental. europeans also have their own particular way of giving the market economy a social face. this was apparent not least during the crisis. it seems to me that the social market economy, which the germans are so proud of, was also embraced by the other countries a long time ago. as i see it, the most important thing is : we have a shared cultural identity which is developing from shared roots. question : how is this idea of europe being conveyed to younger people? trichet : peace, prosperity and stability can never – never – be taken for granted. every country, community and individual must stand up for it time and again. as europeans, we have more political and geostrategic reasons to forge close ties today than we did right after the second world war. back then, the united states of america was the sole major single market. today we have india, china, brazil and other emerging countries with a bright future in front of them. that ’ s good, and that ’ s exactly what we were aiming for 60 years ago when we created the

purpose, or retail, and wholesale. for retail use, the motivations in emerging economies are mainly to reduce cash in circulation, or promote electronic payments, foster financial inclusion, and reduce informality and tax evasion. on the other hand, the motivations for wholesale use are mainly efficiency and security. we could also mention cross - border payments as a motivation for either of the two categories as well. in terms of the benefits, i can mention the following : a. some research indicates that dlt may enhance market efficiency. dlt registers based on real user identities can improve competition, price transparency and liquidity. b. crisis management around the zero lower bound. in a world of low real interest rates, the impact of unconventional monetary policies, such as qe, nominal gdp targeting and forward guidance, appears to be limited ( blanchard, dell ’ ariccia and mauro, 2013, gagnon and sack, 2018 ). fixing negative nominal interest rates in a flexible way could improve the central banks ’ toolkit ( rogoff, 2019 ). however, there page 6 of 11 central bank of chile september 2019 are some drawbacks. the general public could interpret negative interest rates as a new tax and probably legislators would restrict it ( rogoff, 2019 ). also, price and wage rigidity can persist, due to habitconsumption, market power, organizational inertia, information frictions. continuing with the benefits : c. in a world with a widely used cbdc, commercial banks could be smaller / less systemic. cbdcs can give central banks more intervention tools and reduce the risk of runs ( kumhof and noone, 2018 ). d. transparent balance sheets can make it easier to unwind troublesome financial institutions and divest their assets. e. monetary policy channels in a world with cbdcs may be faster and more powerful. today monetary policy works by affecting the balance sheets of banks and some financial intermediaries, which do not pass on all the rate changes to final users due to market power and other frictions. if central banks can reach out to more and more agents ( businesses, households ), then their role will become ever more central and effective. page 7 of 11 central bank of chile september 2019 lastly, use of cbdcs could be explored as a more efficient alternative for remittances. in chile, immigration has had a sharp increase in few years. as in other parts of the world, they