the increasing use of contactless payments impacting on transaction costs across the various payment instruments? how are other actors in the cash cycle, most notably financial institutions, dealing with their cost structures? what is the market price of personal information? or, to put it more directly : do digital forms of payment that contain traces of individual data generate social costs that need to be accounted for in future cost comparisons? 2 / 4 bis central bankers'speeches it is obviously hard to disentangle supply and demand - side drivers in economics. moreover, both drivers are likely to be mutually reinforcing. but to the extent that declining cash usage is driven by supply - side adjustments, central banks can no longer remain neutral. with one side dominating, the coin becomes biased. being neutral with regard to consumer choices does not imply being passive with regard to providing an adequate cash infrastructure. this is especially relevant given that the only viable alternative to physical cash is introducing some form of central bank digital currency. but, in the euro area at least, i cannot see this happening any time soon. conclusion ladies and gentlemen, the coin is still spinning through the air, and two outcomes seem conceivable at this juncture. in the first scenario, private and public actors within the cash cycle take measures to ensure the adequate provision of cash in line with prevailing demand. as a result, the coin retains its current characteristics, encompassing both electronic and physical forms of payment. in the second scenario, the physical side of the coin increasingly starts to resemble the digital side. in effect, the coin becomes one - sided. one - sided coins are not without historical precedent. some 800 years ago, a variety of pfennig coinage dominated monetary circulation in germanspeaking areas. known as bracteates, these coins were embossed on one side and often hollow on the other. the relatively simple technique employed to make them was also reflected in their limited function as a store of value. in fact, these one - sided coins were infamous for their frequent and sharp devaluations. as a result, stable coinages were introduced in the 14th century. those were, of course, twosided and have become a true symbol of monetary stability that has endured to this day. central bank money is the most recognisable means of payment. it is the local unit of account and the only legal tender. ensuring its adequate supply is a key task for central banks, which we need to fulfil at all

barry whiteside : brief comments on fiji ’ s economy opening address by mr barry whiteside, governor of the reserve bank of fiji, at the launch of bsp life ’ s new “ bula elite ” product, suva, 13 june 2013. * * * mr. robin fleming, chief executive officer, bsp group mr. kevin mccarthy, bsp fiji country manager mr. malakai naiyaga, managing director, bsp life limited members of the board, management and staff of bsp life limited and bank south pacific distinguished guests ladies and gentlemen introductory comments bula vinaka and a very good evening to you all! i am delighted to be here this evening at yet another key bsp event, this time to launch bsp life ’ s new bula elite product. thank you, malakai, for your kind invitation. since establishing its presence in fiji, the bsp group has elevated the standards of innovation for financial products and services in both banking and insurance, and has become a leading player in both industries. the launch of another life product is a further endorsement of the success of the bsp group and the key role it plays in fiji ’ s financial system. we at the reserve bank are seeing the flow - on effects of such business success in our domestic economy, through increased positive sentiments and actions by the private sector. let me therefore make some comments on the economy. economic update & outlook we all know that fiji is a small open economy – so what happens globally will generally find its way back to us in one form or the other. while global growth is trending upwards, it is really being pulled along by growth in the major emerging economies ( or the brics as we refer to them ). in contrast, slowdowns are forecast for most of our trading partners in 2013, with much of the eurozone in recession and having been there for the last 4 to 6 quarters. but all this has not dampened our own recent domestic output and the forecasts we have set for the near term. on the domestic front, gdp growth this year is forecast at 2. 7 percent, a little improvement on the 2. 5 estimated for 2012. an important takeaway is that our growth is broad - based with almost all sectors making a positive contribution. in 2013, growth is being led by agriculture, manufacturing, the finance and construction sectors. while we know that investment is the “ driver ” of growth, it is the private sector that is the recognized “