will do our best to ensure that a digital euro meets the needs and expectations of europeans. but it can only be a common european enterprise. the alignment of european authorities and institutions, mindful of their respective mandates and independence, will be key if a digital euro is to be accepted. i am therefore pleased to see that this committee welcomed our work in its recent resolutions on the ecb annual report and the international role of the euro. as co - legislators and representatives of europeans, you have a fundamental role to play in the discussions on the framework that would be needed to issue a digital euro. this is why i very much appreciate exchanges like the one today. i now look forward to your questions. annexes 14 april 2021 appendix - the eurosystem ’ s analysis of privacy - enhancing techniques in central bank digital currencies english 1. “ eurosystem report on the public consultation on a digital euro ” 2. i have discussed elsewhere the possibility that a digital euro may become too successful – namely if, owing to its strengths of safety and liquidity as a form of central bank money, it were to affect monetary and financial stability – and how this risk can be mitigated through appropriate design choices. see panetta, f. ( 2021 ), “ evolution or revolution? the impact of a digital euro on the financial system ”, speech at a bruegel online seminar, 10 february. 3. the questionnaire used in the public consultation included a multiple - choice question ( question 1 ) that asked respondents to rank, in order of importance, the features that a digital euro should offer in their view. the percentages in the text refer to the share of respondents that ranked a specific feature first, i. e. most important. the full question reads as follows : how would you rank, in order of importance, the features that a digital euro should offer? a. i want to be able to use it throughout the euro area. b. i want my payments to remain a private matter. c. i want to be able to use it with my smartphone and at payment terminals. d. i want to be able to pay even when there is no internet or power connection. e. i want it to be easy to use. f. i want to use a digital euro without having to pay additional costs. g. i want it to take the form of a dedicated physical device. h. i want it to be a secure means of payment. i. i want

and acquisition of eligible rural banks and thrift banks by strategic third party investors. as of 30 june 2014, seven merger / consolidation applications involving fifteen ( 15 ) banks have been approved by the pdic and are being processed by the bsp. in addition, there are five ( 5 ) other applications for consolidation / acquisition that are in the pipeline. capacity building is another area we have focused on. in particular, the bsp ’ s supervision and examination sector developed a completely new four - day training program targeted for the board of directors and senior officers of rural banks which we now refer to as the rural bank management course. the bsp worked with rbap on the coverage of such a program. after a series of pilot and early runs we are now ready to hand over to rbap the course materials and the conduct of this well - received and highly rated course. if needed, the bsp is prepared to extend further assistance on this program to rbap. redefining a strategic direction while these programs are meant to enhance the operations of rural banks, we recognize that there is still a lot more that can and should be done. a good starting point is a fundamental review of your banks ’ strengths and weaknesses. after this is completed, identify the needs of your constituents in the context of the competition that has emerged. such a review is likely to show that different communities require different forms of access and delivery of financial products and services. this is the direct result of having an archipelago where demographic differences across localities are significant. this may seem like a stumbling block but this also represents opportunities for rural banks. for instance, our experience in microfinance and financial inclusion shows that alternative delivery channels are viable. you can therefore find a balance between alternative delivery mechanisms vis - a - vis the brick and mortar approach of traditional branching. bis central bankers ’ speeches as you move from one locality to another, you will discover that one approach is more viable than the other, depending on the economics of the locality itself. for other areas, it may be economically feasible to offer both approaches to the community. in the current environment, we do see a silver lining : in the face of rising competition, we see the market growing as the benefits of development programs and fresh investments increasingly find their way to the countryside. we see for instance the positive impact of infrastructure development, tourism and even the conditional cash transfer program. in small communities, such inflows can serve as catalysts for sustainable and inclusive growth. microfin