the euro area as well as cyprus have reached the pre - pandemic real gdp level within 2021, while a similar path has been recorded in the labour dynamics with the labour force participation having reached pre - pandemic levels. this has been achieved by the formulation of ample policy support. the ecb took a series of policy decisions aimed at achieving favourable financing conditions and alleviating the economic hit on households and businesses. more specifically, the ecb enhanced its asset purchase programme ( app ) with the introduction of the pandemic emergency purchase programme known as pepp, the size of which was 1. 85 trillion euros, in order to lower borrowing costs and re - establish 1 / 3 bis - central bankers'speeches favourable financing conditions within the eurozone. focusing on cyprus, the total amount of net asset purchases in government bonds reached €6, 86 billion euros at the end of february, 90 % of which was purchased by the cbc. at the pepp announcement, amid severe market fragmentation, the cyprus 10 year sovereign bond yield increased to 2, 21 % while within a quarter of these eurosystem bond purchases dropped by 1, 25 % ( reaching 0, 96 % in june ), exemplifying the benefits of these purchase programmes. furthermore, the cypriot banking system benefited from the use of tltro iii, as well as from the easing of macro prudential measures, in order to support access to credit. it should also be noted that through the explicit assurance to maintain supportive monetary policy for as long as needed, through our monetary policy forward guidance, the ecb is decisively strengthening the efforts to boost economic activity. turning to the current challenge that we are faced with, the russian invasion of ukraine has moderated expectations of a continued strong gdp expansion in the eurozone and cyprus, at least in the short - term. there is increased uncertainty about the economic impact, owing to the length and breadth of the conflict, the degree of severity of currently enacted sanctions and the extent of possible economic retaliation by russia. against this background, the world economy is experiencing a double hit by complex supply and demand shocks. economic impact in cyprus is expected to be channelled through the foreseen surge in oil prices, the trade in goods and services, such as minerals of oil and fuel, cereals, tourism, transportation and it services, and a negative impact on a specific part of professional services ( lawyers and accountants ), while significant confidence effects cannot be ruled out. a

stablecoins issued by bigtechs instead of money issued by a central bank, then public money could ultimately lose its role as an anchor that has been safeguarding for decades the convertibility of commercial bank deposits or liquidity, into central bank money at par value. this is what actually happens without realising it when we withdraw cash from an atm : our sight deposits, that are a liability for commercial banks are turned into a liability for the central bank, with cash being the 1 / 5 bis - central bankers'speeches safest form of money and the reason why we trust the currency. in the absence of a digital euro, we would risk losing central bank money as a visible symbol, linking the various forms of private digital money to the state. this could undermine trust in the euro area and ultimately in its monetary sovereignty. c ) thirdly, there could be risks to the financial stability of the euro area, as bigtechs would not be concerned with avoiding disruptions to financial intermediation, or the impact on the financial sector's liquidity, or ensuring a balanced compensation model for all involved stakeholders, that is the intermediaries, acquirers and merchants. indeed, the examples of bigtechs'increasing entry in digital finance are numerous. apple's new savings account, linked to its payment solutions, oers interest at more than 10 times the us average rate and has attracted more than 10 billion dollars in user deposits since its launch in april 2023. amazon oers buy - now - pay - later services to its customers worldwide, while x ( former twitter ) is reportedly planning to oer a full range of payment and financial services. in light of these developments, preserving financial stability is what the central banks prudently do. within this spirit, at the european central bank ( ecb ) we consider that making our currency – the euro - available in the digital sphere, is necessary to address the challenges brought by the digital revolution, in order to maintain the role of sovereign money - a public good that central banks manage in the public interest - while securing both innovation in payments and the financial sector's stability. yet, the digital euro can only act as a monetary actor, if it becomes a medium of exchange, that is part of our daily lives. the intention of the ecb is to give consumers the option to use the safest form of money, that is central bank money, in a digital format, complementing existing euro banknotes and coins.