face high costs for their remittances when using traditional methods based on a structure of correspondent entities. an alternative option that is being used, although because of its nature is not possible to have detailed information, are remittances based on cryptoassets. while these remittances may be faster and even cheaper, they are outside of the regulatory perimeter and thus their customers are exposed to several risks ( counterparty, liquidity, operational ). the cross - border use of cbdc would reap the benefits of crypto - based methods, without their risks. certainly, this would require coordination between the central banks involved. a wholesale cbdc may have several benefits • cross - border use of a cbdc may be explored as a more efficient alternative for remittances • remittances using a structure of correspondent institutions are expensive and usually take time to settle. on the other hand, crypto - based alternative may be more efficient, but they are unregulated and have risks. • the cross - border use of cbdc would reap the benefits of crypto - based methods, without their risks. it certainly would require coordination between the central banks involved. on the other hand, some concerns have still not been fully addressed : a. development and management costs of a cbdc, specially a retail cbdc that is available for a large number of people, can be substantial. technical capacity is still not mature enough, and risks of cyberattacks are exacerbated. b. the level of anonymity that the cbdc should have is still a matter of discussion. in digital networks it can be easy to identify anonymous users due to their links to non - anonymous nodes, such as large companies. the public is already frightened by how much sensitive individual information is stored ( nsa, uber, google, facebook … ), it is possible that a cbdc could create anonymity concerns. page 8 of 11 central bank of chile september 2019 c. some of these concerns end up in a discussion about which is the optimum design features : anonymous or pseudo - anonymous? interest bearing? guaranteed convertibility of bank deposits into cbdcs? d. finally, there are some additional risks to take into account : reputational risk if cbdc is not widely adopted by the public, or if privately issued currencies gain more traction ; financial exclusion of the “ nontech ” persons? even though many cbdc experiences are from developed economies

. we have seen how the perceived impotence of public authorities in meeting the needs of their people feeds into frustration and rejection. and we have seen how that risks undermining trust in and support for our institutions – and even the european union itself. so to my mind there is only one way ahead, and that is to complete the vision that theo waigel left us. but progress today must be different from the past. we have to find a new way to build trust among the member states and the peoples of europe – a way that builds on existing institutions to better ensure that the common needs of the people are met. the needs that we share in common, and that can be more safely delivered in common, must be identified and explained more clearly. they include economic interests, such as the benefits provided by a large and fully integrated financial area. they include defence, and more generally security against internal and external threats, the capacity to address global migration challenges and the protection of intellectual property – all of which the european union helps deliver, in ways that individual governments may not necessarily be able to do. and they include environmental protection and the fight against climate change. it is the demonstration of why, and how, those interests can be better protected in common that will gradually complement compliance and convergence as the basis for trust and the cement of the union. and i think that in many cases the evidence is already there for all to see. but to move forward, and i believe it is in our interests to do so, will require us to draw on the qualities that made theo waigel a leader. bis central bankers ’ speeches his focus on the long horizon rather than the demands of the day. his courage in his convictions and his resilience in seeing them through. and above all his mastery at convincing and building consensus. that would be the best way to honour theo waigel ’ s legacy, and to deliver the stability and prosperity that our union was built for. bis central bankers ’ speeches