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

april, danmarks nationalbank was able to lower its discount rate to 1. 75 per cent – the lowest level since the establishment of danmarks nationalbank in 1818. although the lending rate is slightly higher, the short - term interest rate is historically low. long - term interest rates have decreased less than policy rates. the central banks of several countries, including the uk and the usa, are buying back bonds to force down long - term interest rates in order to stimulate the economy. it remains to be seen whether the european central bank will steer a similar course. if it does, long - term interest rates in denmark could also be affected. it is essential that the current extraordinary stimulus measures do not increase long - term inflationary expectations as this would create problems for the economy in the longer term as a result of measures to mitigate the current crisis. thanks to the low policy rates, the banks can borrow from danmarks nationalbank at low cost. but danmarks nationalbank is by no means the only source of financing for danish banks. the financial crisis has generally made it more difficult for the banks to obtain financing in the international money and financial markets. this has entailed higher financing costs. the importance of the international money markets as a source of financing has grown over the last 10 years as growth in the banks'deposits has lagged behind growth in lending. the higher financing costs have been passed on to the banks'customers. since last autumn, the banks have again reduced their interest rates somewhat. the decline in deposit rates has more or less mirrored the reduction in policy rates, while lending rates for households and the corporate sector have declined a little less. the result is higher interest margins for the banks, at a time when losses are expected to increase for a period to come. in addition, the banks'contribution to the financing of the government guarantee under bank rescue package i will amount to kr. 35 billion. danmarks nationalbank's interest rates are guidelines for the banks'interest rates, but a one - to - one relation should not be expected. the credit terms for bank and mortgage customers have been tightened further since last autumn. this is evident from danmarks nationalbank's latest bank lending survey. the tightening has been most pronounced for corporate loans. in the survey, the respondents give the more gloomy risk outlook as the main reason. the risks have proved to be greater that the institutions expected three months ago. the mortgage - credit institutes also state the supplementary