japan, the idea prevails that securing a two - tiered system with the kind of advantages that i have just mentioned is also preferable when implementing cbdc. at the same time, because cbdc, unlike cash, does not take up any physical space, there is concern that a sudden and large - scale flow of funds from deposits to cbdc could have an excessive impact on the two - tiered system. as a preemptive measure, many countries have been considering putting in place a safeguard, for example, by imposing a ceiling on users'cbdc holdings. third, the use of data leaves digital footprints. this feature generates opportunities to leverage data, a characteristic not observed in cash. such opportunities carry the potential of bringing about enhanced convenience for consumers and growth through creation of new values. this has also shed light on the growing importance of networks that coexist with payment services, such as e - commerce and social networking sites. at the same time, we must be aware of privacy - related concerns that this would give rise to. of course, being able to effortlessly conduct payment that transcends space - which i touched upon earlier - - means that this could increase room for illicit financing such as money laundering. this calls for the need to consider countermeasures. with this in mind, it is essential to design a framework in which privacy protection is ensured 2 / 3 bis - central bankers'speeches through such measures as minimizing the amount of data accessible to the bank of japan. points considered in exploring cbdc whether to issue a retail cbdc in japan should be decided by discussions among the public. to facilitate such discussions, the bank has been proceeding with technical experiments and explorations into institutional arrangements. in doing so, the following three points are borne in mind at all times. the first is to visualize and shape our future. while cbdc continues to be explored by many countries as one of the realistic options being laid out, the goal of these future discussions is to design payment and settlement systems that are suitable for a digital society, taking into account external factors such as the introduction of novel technologies and new forms of money including stablecoins. in doing so, it is necessary to consider, with a well - balanced perspective that takes into account both global and domestic circumstances, potential problems that could eventually arise even if we do not face an immediate problem at the moment. second, there is a need to respect the various functions that cash and the two

be generally favorable particularly for firms with high credit ratings, although the issuing environment for those with low credit ratings is deteriorating. credit demand in the private sector is declining faster mainly because firms are decreasing their business fixed investment while continuously reducing their debts. amid these developments, private banks ’ lending continues to decline at about 2 percent on a yearon - year basis. as for the amount outstanding of corporate bonds issued, the year - on - year growth rate has been slowing due to a decrease in the issuance of corporate bonds with low credit ratings. the year - on - year growth rate of the amount outstanding of cp issued is declining recently, although the amount is still well above the previous year ’ s level. the growth rate of money stock ( m2 + cds ) in november increased slightly from the previous month owing to a rise in demand deposits. funding costs for firms continue to be at extremely low levels on the whole, although market funding costs for some firms are rising. overall, the recent financial environment remains extremely easy in terms of money market conditions and interest rate levels. however, the fund - raising conditions of firms with high credit risks, especially of small firms, are becoming severe as private banks and investors are becoming more cautious in taking credit risks against the background of a growing number of corporate bankruptcies. hence, the developments in the behavior of financial institutions and corporate financing need closer monitoring.