we can weigh the arguments and draw any conclusions. alternatives to cbdc ladies and gentlemen, page 8 of 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. looking at the future of payments, consumers ’ preferences and needs should be front and centre. the general public want quick, convenient, secure and cheap payment methods – including for payments abroad. that, however, does not necessarily require cbdc. of course, market failures could justify a larger role of the state. but in a market economy, offering innovative payment solutions to the public and interacting with customers should be a primary task of the private sector. central banks have to ensure that the payment system runs smoothly and they can act as a catalyst. this is why the eurosystem is supporting the “ european payments initiative ” launched by a group of 16 major euro area banks. this initiative is seeking to replace national schemes for cards, online and mobile payments with a unified card and digital wallet that can be used across europe. 12 beyond that, digitalisation will leave more and more processes fully automated. therefore, incorporating a programmable payment medium would be practical and relevant for smart contracts or machine - to - machine payments. to facilitate this idea, the bundesbank and the federal ministry of finance are co - chairing a group comprising representatives from the two institutions, the financial industry, and the real economy. i ’ m sure that private sector providers will be able to develop convenient and efficient applications for consumers and businesses. _ _ _ _ _ _ _ _ _ _ _ _ _ 12 european central bank ( 2020 ), ecb welcomes initiative to launch new european payment solution, press release, 2 july 2020. page 9 of 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. however, in the future, as today, recipients of large payments will prefer settlement in central bank money

dr jens weidmann president of the deutsche bundesbank on the future of money and payments panel statement at the bundesbank virtual autumn conference " banking and payments in the digital world " 11 september 2020 – check against delivery – page 1 of 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. table of contents introduction.............................................................................................. 2 opportunities and risks of central bank digital currencies 3 2. 1 2. 2 opportunities of cbdc.................................................................................. 4 risks of cbdc................................................................................................. 7 alternatives to cbdc.................................................................