faster and smoother transmission of monetary policy to the economy. but digitalization also raises new risks. a major one is to jeopardize the central role, as anchor and stabilizer, of the national central bank currency of a country ’ s financial and monetary system. this risk stems from the possible development of alternative systems whose settlement asset is not solidly linked to the national central bank money. for instance, tokenized financial assets are booming with the risk that transactions involving them settle with other settlement assets than central bank money, including crypto - assets. in the retail payment space, new players such as bigtechs with huge financial resources and benefitting from worldwide network effects, are making inroads into the payments industry and may provide dominant payment solutions with settlement coins with loose links, if any to central bank money. 2. let me now turn to the consequences from a more macroeconomic perspective that are relevant for the conduct of monetary policy digitalization affects the measurement of the price index. it exacerbates measurement issues well - known to price indices, such as dealing with frequent product replacements and 1 / 4 bis central bankers'speeches adjusting for product quality, or dealing with changes in the structure of the economy and hence the weight of new technologies in the economy. digitalization also influences inflation dynamics via firms ’ pricing behavior, market power and concentration, as well as firms ’ productivity and marginal costs. on the one hand, it reduces search costs and increases price transparency – think of how e - commerce renders price comparison easy - thereby reducing mark - ups. on the other hand, it increases the degree of market power and mark - ups by increasing entry costs for competitors of “ superstar ” firms especially due to a strong network and platform effect. the overall impact is therefore ambiguous. hence, digitalization should not only influence price level, but also its dynamics and its relation to real activities. b. policy responses and the role of a cbdc the macro financial and macroeconomic possible positive and negative impacts of the spread of digital technologies create challenges to central banks ’ roles and missions. three of them are of particular relevance in the case of europe : i ) a risk to european sovereignty in payments with the emergence of digital solutions offered by non - european - players, being private or public ; ii ) a threat to monetary and financial stability, notably through the risk of a disanchoring of the role of central bank money both in the retail and wholesale space ; and iii ) a threat

and platforms which provide services at the interface between crypto - assets and the real economy. from a more prospective point of view, artificial intelligence ( ai ) will be among the most 2 / 3 bis central bankers'speeches impactful technologies in the financial industry for the upcoming years : 1 up to 30 % of major french banks ’ projects in current development are heavily focused on ai and the potential for insurers is equally huge both for the traditional damages insurance as for life insurance products. the expected benefits of ai in customer relationship and risk management are numerous : we don ’ t know the limits, and we shouldn ’ t be frightened of ai. to allow its wider use in a secured way, we have set up a task force on ai, led by the acpr and gathering all relevant industry representatives. and i already stress that we have to collectively implement at least three core principles : ( i ) promoting a greater understanding of algorithms to avoid the ‘ black box effect ’ ; ( ii ) ensuring a sound governance of ai - based systems ; ( iii ) fostering an ethical use of data so that bias - free ai applications promote inclusiveness. last but not least, green finance represents a new frontier for the 21st century for us as central bankers and supervisors. one of our priorities is to better measure the long - term risks associated with climate change : we need both a “ snapshot of the risks ” – namely the identification and disclosure of exposures – and a “ video of the risks ” provided by forward - looking carbon stress tests. but we also intend to develop the huge opportunities related to the financing of the transition towards a low - carbon economy – up to usd 90 trillion are needed till 2030 –, while preventing the risk of “ green washing ”. it would certainly make sense to promote a convergence towards a harmonised european standard for green bonds – including uk –, leveraging the green bond principles approach in terms of processes and transparency, and building on the climate bond initiative approach with regard to taxonomy. much has to be done in the coming years. in that regard, i am very happy to count the bank of england among the founding members of the central banks and supervisors network for greening the financial system ( ngfs ) that was launched by the banque de france last december. this is an enthusiastic and rapidly developing “ coalition of the willing ” : the nine founding members should shortly be joined by three new members and two observers : the bis and the oecd. several other