. speech at bank of england conference, london, 8 july 2022, https : / / www. federalreserve. gov / newsevents / speech / brainard20220708a. htm the future monetary system. bis annual economic report, chapter iii, 26 june 2022, https : / / www. bis. org / publ / arpdf / ar2022e3. htm barry eichengreen, digital currencies – more than a passing fad? current history, january 2022, https : / / online. ucpress. edu / currenthistory / article / 121 / 831 / 24 / 119206 / digital - currenciesmore - than - a - passing - fad barry eichengreen, written evidence to uk parliament on cbdcs, 21 october 2021, https : / / committees. parliament. uk / writtenevidence / 40386 / pdf / christine lagarde and fabio panetta, key objectives of the digital euro. blog post, 13 july 2022, https : / / www. ecb. europa. eu / press / blog / date / 2022 / html / ecb. blog220713 ~ 34e21c3240. en. html martin wolf, a matter of interest - the battle over monetary policy. financial times, 27 july 2022, https : / / on. ft. com / 3jbvkc8 5 / 5 bis - central bankers'speeches

between people, covering online shopping as well as bricks and mortar businesses. we have laid down several basic requirements for a digital euro, such as easy accessibility, robustness, safety, efficiency, privacy and compliance with the law. these will help us define what a digital euro might eventually look like. importantly, a digital euro would be designed to work together with private payment solutions, facilitating the provision of pan - european solutions and services to consumers. with global cooperation it could eventually also solve many of the issues plaguing cross - border payments. so why should we introduce a digital euro alongside cash? would it not be enough to rely on the private sector to provide us with efficient payment means for the digital age? recent market developments have highlighted the fact that crypto - assets are fundamentally different from central bank money. their prices are volatile, which makes them hard to use as means of payment or units of account. even stablecoins attempting to piggyback on the credibility provided by central bank money have failed to guarantee one - to - one convertibility with it. as the bis meticulously pointed out in their recent annual economic report, crypto - assets'limitations are structural. an economy dominated by digital payments but without a strong monetary anchor would be inherently unstable. federal reserve vice chair lael brainard also recently noted that, given the foundational role of fiat currency, a digital native form of safe central bank money could enhance stability by providing the neutral trusted settlement layer in the future financial system. people using a digital euro, or a digital dollar, should have the same level of confidence as they would when using cash, since both fiat and digital forms of currency would be backed by a central bank. a digital payment landscape without a monetary anchor provided by the central bank would simply confuse people's understanding of what qualifies as money. 3 / 5 bis - central bankers'speeches the transformation of the payments landscape also raises important questions about the security of a monetary system in the digital age. digitalisation is making financial services more efficient but leaving them more vulnerable to cyber - attacks and other forms of cyber risks. these risks and hybrid forms of influence have increased in the current environment of heightened geopolitical tensions, not least as a result of russia's invasion of ukraine. the vulnerability of the crypto ecosystem to hacks and theft as well as its capacity to facilitate financial crime, money laundering and other illegal activities is another reason to offer safe and legal means of payment in the digital