integrity of the european payments system. digital euro the eurosystem ’ s work on a digital euro is an insight into the future of retail payments. a digital euro would make digital central bank money accessible to everyone. it would provide access to a simple, costless, risk - free and trusted digital means of payment that is accepted throughout the euro area. the possible issuance of a digital euro alongside cash would be driven by the same objectives i have already outlined : responding to evolving consumer preferences, fostering a competitive payments market and preserving european autonomy. a digital euro would both shape and promote the digitalisation of payments, in turn supporting the digitalisation and modernisation of the european economy. if properly designed, it would allow banks to build new business models and offer their customers cheaper and innovative services. it would increase privacy in digital payments thanks to the involvement of the central bank, which – unlike private suppliers of payment services – has no commercial interests related to consumer data. a digital euro could become necessary in a number of scenarios. for example, if people would become reluctant to use cash, if other electronic payment methods could become unavailable owing to natural disasters, or if foreign digital means of payments threatened to largely displace domestic money. but introducing a digital euro could pose challenges. some are technical, such as cyber risks and the protection of privacy. others are related to the possible impact on the activity of banks, on financial stability and on monetary policy. a properly designed digital euro would need to address such risks. we have started to explore appropriate strategies, for example in relation to the remuneration of digital euro holdings [ 14 ] and the protection of privacy. as the issuer of our currency, the eurosystem is carefully examining the economic, technological, societal and strategic implications of the possible issuance of a digital euro. we have recently published our report on a digital euro, and started a public consultation. [ 16 ] we will carefully examine the feedback we receive, so that if and when developments around us make it necessary, we will be ready to issue a digital euro that meets the needs of europeans. conclusion european authorities must be attentive and ready to respond to the ongoing transformation of the european payments landscape. they must ensure that digital payments are underpinned by a competitive and innovative market capable of meeting consumer demand, while preserving european sovereignty. to reach these objectives, the eurosystem has set out a comprehensive strategy based on complementary elements, which range from the provision of cash

tips allows individuals and firms to transfer money by settling electronic payments in less than ten seconds. 3 / 4 bis central bankers'speeches but, for private risk - sharing and market integration to be effective, they need to be supported by policies on other fronts. fully applying the budgetary rules and coordinating economic policies more effectively remain vital to strengthen the resilience of the euro area and create the confidence among member states that is needed to proceed towards further integration. in parallel to this, the institutional foundations of emu need to be fortified. on the one hand, it is important to strengthen the governance and operational capacity of the european stability mechanism while fully respecting eu law. this will better protect euro area countries against severe shocks. on the other hand, establishing a budgetary instrument that supports convergence and competitiveness would help to strengthen the resilience of the euro area as a whole, as well as the resilience of each of its member countries. conclusions let me conclude. as we are approaching the end of this parliamentary term, let me take the opportunity to thank this committee for the very constructive relationship our two institutions have established over the past five years. these have not been easy times, and the public has rightly asked for effective and tangible responses to economic and financial challenges. you have played a vital role in relaying those expectations and in ensuring that the ecb ’ s accountability – the necessary counterpart of its independence – was effectively discharged. moreover, as co - legislators you drafted and adopted the reforms that made it possible to have a stronger union today. you know better than i that reform is a continuous endeavour and that the benefits of these efforts are not always easy to communicate. still, the december eurobarometer showed that support for the euro rose to 75 % in 2018. this provides a solid basis on which to build and advance along the path towards a deeper and more complete emu. i am now at your disposal for questions. 4 / 4 bis central bankers'speeches