it is not necessary at all to set up hurdles between functional supervision, market entry and development of financial products. with economic development, whichever department is responsible for approval of establishment of institutions, business innovation shall not be impeded. there shall, not necessarily, be contradictions between functional supervision and business development. supervisory departments are adapting to the changing situation, transforming conception and strengthening coordination. besides, to maintain the stable and balanced development of the macro economy, the reports of the third plenary session of the 16th congress of the cpc have stated clearly that the pbc, the ministry of finance and the three supervisory commissions shall further strengthen coordination. the tendency has been reflected in relevant legislations. vi. the inherent advantages of foreign - funded banks have provided great potential for their development in china, and their development shall correspond with the demands of the macro financial situation. since reform and opening, more and more foreign - funded banks have entered the chinese market, playing significant roles in improvement of the chinese financial system and development of the financial market. in the course of economic transition, foreign - funded financial institutions have exhibited some advantages in corporate governance, risk control, risk management, credit culture, decision - making procedure, incentive structure and assets management, producing great potential for their development, and particularly for promoting development of the financial market and financial product innovation. development of foreign - funded banks shall take into consideration the needs of the chinese macro financial situation as well. in the course of economic transition, different industries and regions will have different stages and potential of development. foreign - funded banks might as well attach greater attention to development of some relatively weak financial markets, weak financial products or weak links and to the transformation of the economic structure, by supporting the development of northeastern old industrial bases and western region of china. they shall compete with the chinese counterparts on one hand and complement them on the other. it is hoped that foreign - funded financial institutions in china will do more to meet the needs of the chinese macro financial situation. they shall not only share the profits out of the rapid and stable growth of the chinese economy during the booming period but also weather possible busts and even crises for long - term operation and benefits. the above is also a topic for discussion and deliberation during the meetings of the bank for international settlements in february, 2004.

century china, today ’ s security features and materials are very much up to date. banknotes have stood the test of time – and they continue to do so. but, however much that may be the case, the leap into the digital realm has not been made. not yet. with such a leap into the digital realm, we would extend the public ’ s trust in physical banknotes to the digital world. to do so successfully, a banknote ’ s digital twin must have the same features as physical banknotes have today. no one needs to know what you pay for with digital euros – just like with cash. the balance, though, between privacy and other public policy objectives, like countering money laundering and illicit activities, is ultimately for the european co - legislators to decide. everyone must be able to use the digital euro, including the less digitally savvy. just like cash. everywhere in europe, at every point of sale, to every other person, you should be able to pay with the digital euro, just like cash. digital euro holdings will not be remunerated, in line with the non - remuneration of cash. indeed, the digital euro will have all the good things of cash. most notably the offline functionality, which is to be offered from the outset, will be instrumental. offline is the embodiment of a digital version of cash, bringing true and unique added value to consumers and retailers, not just in my home country. a digital euro must provide for both online and offline use cases to fulfill the promise of being able to pay with public money anywhere in europe at any time. © dnb & shutterstock a second reason why we are investigating the digital euro is that it will provide a public answer that – together with private solutions – will lay the puzzle for a more integrated european retail payments market. digitization has brought innovative solutions to the european payments market, but two characteristics stand out : one – our european retail payments market is heavily fragmented along national lines ; and two – our european digital payments market is, essentially, dependent on non - european technologies or non - european parties. to cut to the chase : currently, we do not have a pan - european digital retail payment solution of european origin. and though this doesn ’ t have to be a problem in normal times, it does raise questions about european strategic autonomy in adverse times. because no matter how you look at it, payments – whether cash or digital – are like water