##operability or cybersecurity. this is important. much research and experiments are going into this field, and we follow it closely. at danmarks nationalbank we are currently putting a lot of work into enhancing cybersecurity and robustness in our systems. the question of a retail cbdc goes far beyond technology. its introduction would change the structure of the financial system and the respective roles and demarcation lines between commercial banks, central banks and other institutions, in the provision of money. several reasons have been proposed for introducing retail cbdc. examples include improving critical infrastructures, financial inclusion or strengthening competition and cybersecurity. some of these issues are not new and have typically been addressed by regulation, or by improving existing technologies. it is not clear to me that we require a different approach now, but perspectives and circumstances across countries differ. page 7 of 8 a key question often voiced is whether the decline in cash use will eventually lead to a lack of trust in money, and if so, whether a retail cbdc could take the role of cash in ensuring this trust. as already noted, based on what we know today, it is not clear to me that cash in the hands of private citizens is the anchor of trust in our monetary system, certainly not in denmark. but this is an open question, and i look forward to discussing today. conclusion to conclude, new technologies and digital innovation are changing the nature of society. when we assess the implications for money and central banks, we should draw on our extensive knowledge on how monetary systems work, while learning from new developments and insights. i have laid out some preliminary views and assessments reached at danmarks nationalbank. but to return to where i started : we want to engage, we want to learn, and we want to be challenged. i wish you an excellent conference! page 8 of 8

underlying income flow or productive value. they cannot function well as money. notably, they suffer from the same problem as monetary gold in that their supply is not responsive to the needs of the economy. their value is anything but stable. page 5 of 8 in contrast, i believe that we cannot rule out the potential of stablecoins. if the digital part of the economy is migrating on to dlt based networks and platforms, money based on these technologies could end up playing an important role. issuers of stablecoins promise to deliver stable value of a crypto - based asset by backing these with safe assets from the traditional monetary system – e. g. us dollar assets. the business model of a stablecoin can thus be likened to that of a bank deposit, only that stablecoins are based on crypto technology, and – for now - lack proper regulation and deposit insurance. sound regulation is a necessary condition for stablecoins to function well as money in future dlt - based environments. issuers should be regulated according to the services they provide – money or settlement balances – and the risks associated with these services, rather than according to the technology used to deliver it. this would also ensure a level playing field in which different business models – e. g. commercial bank deposits and stablecoins – can soundly compete on delivering value. the upcoming eu - regulation of markets in crypto assets – or mica – is an important step in the right direction. 3. the question of cbdc the shift away from cash and the rise of blockchain and crypto raise important questions for central banks. one of these is whether we should issue central bank digital currency – so - called retail cbdcs - directly to private citizens. let me offer some reflections on this question. page 6 of 8 first, it ’ s important to distinguish between retail and wholesale cbdc. a retail cbdc is a digital deposit issued by the central bank for private citizens and companies. the term wholesale cbdc is often associated with dlt - based central bank reserves accessible for financial institutions. issuing wholesale cbdc is a question of technology. we already issue central bank reserves, which are wholesale digital central bank money using traditional technology. supplementing this with dlt based wholesale cbdc may at some point become necessary or desirable, for example if dlt and blockchain based technology becomes pervasive in economic networks and platforms. or because dlt based wholesale cbdc may enhance inter