setback in terms of security. prior to the health crisis, the risks of financial instability associated with the large - scale use, as a means of payment, of crypto - assets with unstable value, uncertain convertibility into central bank money, and without a responsible issuer and credible lender of last resort in the event of a destabilising shock, had been clearly identified. with the crisis and the acceleration of the digital transformation, it risk, and in particular cyber risk, has taken on a new dimension and added an operational dimension of systemic importance to the risk of financial instability, which also concerns cryptoassets. c - levers for action for a central bank such as the banque de france, which is responsible for ensuring the smooth functioning of our payment system, the objective is thus to make sure that innovations deliver the expected benefits for users in terms of speed, cost savings and ease of use, but without undermining the efficiency and stability of our overall payment system. as a result, at the banque de france, we are not ruling out that we might need to issue a digital form of our currency, to preserve the anchoring role of central bank money by providing it in a form that is better suited to the new, highly digitalised payments landscape. this is why we have taken an ambitious experimental approach to a cbdc : we are currently in the process of finalising our programme of experiments on an “ interbank ” or “ wholesale ” cbdc, to test whether and how it could improve the performance, speed, transparency and security of transactions between major financial players, especially for crossborder payments. in parallel, the banque de france is closely involved in the investigation phase launched by the eurosystem in july for the retail digital euro, which would be used by the general public in everyday payments. however, a cbdc is not the only, or indeed the most urgent instrument we need to use. 2 / 5 bis central bankers'speeches we also regard regulation as a priority, because the smooth functioning of our payment system depends, first and foremost, on a regulatory framework that is clear, fair ( “ same activity, same risk, same rule ” ) and balanced – in other words capable of encouraging innovation and at the same time maintaining the stability of our payment system. this is why we have welcomed and are supporting the proposed markets in crypto - assets ( mica ) regulation and the digital operational resilience act ( dora ),

as people have become more pessimistic about both economic conditions and their own financial prospects. compared with the household sector, the business sector generally presents a more upbeat picture. manufacturing production has risen nearly 15 percent since its trough, driven importantly by growth in exports. indeed, the u. s. trade deficit has narrowed substantially relative to where it was before the crisis, reflecting in part the improved competitiveness of u. s. goods and services. business investment in equipment and software has also continued to expand. corporate balance sheets are healthy, and although corporate bond markets have tightened somewhat of late, companies with access to the bond markets have generally had little difficulty obtaining credit on favorable terms. but problems are evident in the business sector as well : business investment in nonresidential structures, such as office buildings, factories, and shopping malls, has remained at a low level, held back by elevated vacancy rates at existing properties and difficulties, in some cases, in obtaining construction loans. also, some business surveys, including those conducted by the federal reserve system, point to weaker conditions recently, with businesses reporting slower growth in production, new orders, and employment. why has this recovery been so slow and erratic? historically, recessions have tended to sow the seeds of their own recoveries as reduced spending on investment, housing, and consumer durables generates pent - up demand. as the business cycle bottoms out and confidence returns, this pent - up demand, often augmented by the effects of stimulative monetary and fiscal policies, is met through increased production and hiring. increased production in turn boosts business revenues and increased hiring raises household incomes – providing further impetus to business and household spending. improving income prospects and balance sheets also make households and businesses more creditworthy, and financial institutions become more willing to lend. normally, these developments create a virtuous circle of rising incomes and profits, more - supportive financial and credit conditions, and lower uncertainty, allowing the process of recovery to develop momentum. these restorative forces are at work today, and they will continue to promote recovery over time. unfortunately, the recession, besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis. these two features of the downturn, individually and in combination, have acted to slow the natural recovery process. notably, the housing sector has been a significant driver of recovery from most recessions