, giving people greater choice in how they pay. this is also why the digital euro cannot and will not be a tool used to impose negative remuneration on money. if digital euro holdings were to be remunerated, the remuneration of individuals ’ holdings for basic retail use would not go below zero. and effective choices on the design of a digital euro would eliminate risks to financial stability and banking intermediation. a digital euro would encourage further innovation and digitalisation in retail payments. supervised intermediaries such as banks and payment institutions could build on the digital euro to offer additional services to end users. respondents to our consultation expect the digital euro to foster the provision of services that add value, like those covered by the revised payment services directive [ 11 ] and those that could offer the possibility of linking a payment to an external condition. we are currently focusing on domestic needs in the euro area. but a digital euro could also help to address inefficiencies in cross - currency and cross - border payments. [ 13 ] we are working with other major central banks to reap the potential benefits of digital currencies at the global level. we want to gain a better understanding of the implications of different types of central bank digital currencies, while controlling the possible risks to both domestic and foreign economies. conclusion let me conclude. the record level of participation in our public consultation and the willingness of citizens and professionals to support a digital euro are encouraging. their responses show the high expectations that prospective users have for a digital euro and provide valuable input for our work. we are treating this matter with priority and will move as rapidly as possible. but we also need to take the time to do it right. in the coming months, the ecb ’ s governing council will decide whether to start a formal investigation phase on a digital euro. in such a phase, we would carefully analyse possible design options and user requirements as well as the conditions under which financial intermediaries could provide front - end services built on a digital euro. we expect this analysis to take around two years. at the end of the investigation, the governing council would take a decision on the design and on whether to move to the implementation of user requirements. this phase, which would take several years, would see the development of integrated services, testing and possible live experimentation of a digital euro. only at the end of this process would the governing council be able to decide whether or not to launch a digital euro. we

when necessary – for example to safeguard financial stability and banking intermediation by preventing excessive capital flows or excessive use of the digital euro as a form of investment. even if users have to identify themselves when they first access digital euro services, different degrees of privacy can still be maintained for their payments. certain transactions could be conducted without the payment details being shared with third parties. for example, if low - value offline payments were offered, they could be settled between the payer and payee without any data being shared with intermediaries. for electronic and large - value transactions, details should be available to intermediaries. but privacyenhancing techniques could still ensure a high level of privacy. for example, the identity of users could be kept separate from payment data, allowing only financial intelligence units to obtain this information and identify the payer and payee when suspicious activity is detected. our preliminary experimentation on a digital euro is showing promising results on how technology can be used to protect user privacy without relaxing standards against illicit activities. but there could also be cases where transparency of payments would be in the interest of consumers. for example, it may be necessary to verify a payment after it has been conducted to prove that the transaction took place or if a refund is required. in any event, cash would remain available alongside a digital euro. consumers would be able to continue to make anonymous payments with banknotes, if they wish to do so. we will take all these factors into consideration as we continue our work and seek the views of stakeholders to find the right balance. this includes maintaining a close dialogue on the implications of potentially issuing a digital euro and the framework that would be needed to do so with the legislators and institutions that set the rules on privacy and data protection. a digital euro as a new and secure payment solution the security and usability of the digital euro are also particularly important for prospective users. electronic payments are becoming increasingly popular, so a digital euro would ensure that sovereign money – a public good that central banks have been offering to citizens for centuries – remains available in the digital era. people could have full confidence in both the digital euro and cash, since they are both backed by a credible central bank. this is a unique feature that no private payment scheme can provide. let me emphasise, once again, that a digital euro would not mean the end of cash. it would complement cash, not replace it. in doing so, a digital euro would contribute to a more diverse payments landscape