combat regulatory arbitrage. this is true with regard to the relocation of business activities from one jurisdiction to another as well as to evasive actions in the form of switching from one sector of the financial system to another. for example there is the danger that activities may be relocated from the banking sector to the less strictly regulated shadow banking system because banking regulations due to basel iii and the regulations governing systemically important financial institutions have been intensified. besides potential regulatory arbitrage, we must also pay more heed to the interplay between individual regulatory initiatives. where there is a lack of consistency there is a danger that bis central bankers ’ speeches different measures may create conflicting incentives or cause countervailing effects. one such example is the interplay between the crd iv / crr and solvency ii regimes. the former seeks, among other things, to place bank funding on a more stable, long - term basis. however, under solvency ii and certain circumstances the effect can be to benefit short - dated bonds. since insurers are among the leading investors in bank bonds, this can have a direct impact on the refunding costs for banks. 2 ) intensify international cooperation besides gearing regulation more closely to systemic aspects, we have to push for greater cross - border cooperation. this is a precondition for preventing competitive distortions as a result of international regulatory arbitrage or gaps in regulation. solo attempts for single nations are non - viable options. i therefore strongly welcome the fact that the g20 has become established as the central forum for international cooperation, and that the financial stability board ( fsb ) has assumed a pivotal role in the international debate on regulation. but at the same time we must maintain a certain degree of national flexibility. national financial systems continue to differ, in some cases substantially. this being so, it would not be appropriate to strive for across - the - board uniformity for all regulatory requirements. we should not stop competing for optimal regulation. by that i don ’ t mean countries undercutting each other with more and more lax provisions. the last few years have shown, where such a “ race to the bottom ” can lead us. what is important is that we exchange experiences, learn from the past and, if necessary, subscribe to the regulatory approaches and measures implemented by other countries. to sum up, let me say this : we are on the right track. the international financial system is already considerably more stable. but only by focusing on

towards cashless payments had something to do with preventing transmission of the virus. while handling banknotes and coins is not a likely cause of infection, the wish to avoid any contact was still reason enough for many retailers to start offering card payments more actively. for many payers in germany, it was the first time they realised that they already had not just a card in their wallet, but a card with contactless payment features. acceptance of these payment methods experienced a surge, as even the notoriously conservative german consumer became aware of the advantages this new and easy - to - handle payment instrument has to offer. recent figures from girocard2 – the german debit card system run by the banking sector – seem to confirm this change. the number of girocard transactions in the first half of 2020 was 21 % up on the first two quarters of 2019, climbing to 2. 6 billion transactions. about 50 % of all girocard transactions were contactless in the first two quarters of 2020, up from 25 % in june 2019. the question now is whether the habits acquired in times of disruption are here to stay. i think 1 / 3 bis central bankers'speeches they very well might be. bundesbank online surveys of april and may 2020 found out that 73 % of respondents who changed their payment behaviour during the pandemic said they would probably or even certainly stick to this new behaviour. covid - 19 was just a catalyst. because we had already seen in 2019 that cashless payments were becoming more popular and that the shift from cash to cards was stronger than in preceding years. but with a 73 % share of transactions, cash is not on the way out, at least not in germany. 3 nevertheless, the changing shape of the payments and settlement landscape raises questions that go to the very heart of a central bank ’ s core functions. with the onset of covid - 19, talk about digital central bank currency ( cbdc ) seems to be that much out of scope in the eyes of the average consumer. technological advances such as distributed ledger technology ( dlt ), which opens up fresh opportunities e. g. in the internet of things, and also the initiatives pursued by other central banks and private companies to develop new means of payment, like libra, have triggered debate on the future of payments. in january 2020, the governing council of the ecb established a high - level task force in order to advance joint work on cbdc. being the deutsche bundesbank executive board member