of central bank digital currency on physical cash? what would be the impact on central bank seigniorage? how would market participants change their investment bis central bankers ’ speeches strategies and business models? would there be any implication on the integration of the european capital market, financial inclusion, and economic growth? i will certainly not attempt to answer today this list of questions, which could be further continued. i just want to show that the narrow issue of a move of the eurosystem ’ s market infrastructure for the settlement of payments and securities would involve far more issues than an assessment of the technical capabilities of dlt. we have a lot of more thinking to do. within the ecb, i will steer an organisational structure for analytical work on technological innovation in the financial sector. it will range from practical aspects, such as the possible usage of dlt for our eurosystem market infrastructure, to more research driven activities like the implications of the issuance of central bank digital money. in this context, we publish today two papers on the impact of dlt on securities post trading. i dare say that there is a big demand for research into the dlt related questions and their policy implications. contributions in this field are highly welcome. part 3 : observations on dlt from the catalyst and oversight perspective let me finish with some reflections from the eurosystem ’ s catalyst and oversight perspective. we strongly believe that the creation of an integrated european market for payments and securities brings improvements in efficiency and contributes to economic growth. in its catalyst role, the eurosystem aims to ensure that technological innovation does not lead to a disruption or re - fragmentation in the market. as a facilitator, the eurosystem stands ready to help the industry co - ordinate its efforts to work on standardisation and interoperability both in the payments and in the post - trade domain. standardisation and interoperability are also key issues for dlt. it would seem almost ironic to look at a consensus technology from a proprietary perspective and to create silos. on the other hand, is a permission - less world without a trusted third party or a supervised gatekeeper a utopian approach that flies in the face of human history? it is a positive signal that there are collaborative initiatives between fintech companies and banks and between banks, market infrastructures and technology companies. in the post - trade domain, we recently had a workshop which came to the understanding that the involvement of the eurosystem in the

institutions. here, we need to arrive at a common understanding on how the adoption of dlt could potentially affect the overseen and supervised entities and their business models, and on how reporting and accounting could be affected. part 1 : the development and operation of the eurosystem ’ s financial market infrastructure let me start with our reflections on how to go forward with the eurosystem ’ s financial market infrastructure for payments and securities. the eurosystem is the owner and operator of target2, the real - time gross settlement system for the euro, and of target2 - securities ( t2s ), the integrated platform which processes the real - time settlement of securities transactions against central bank money across europe. to address the need for these financial market infrastructures to continuously evolve and keep pace with market developments and technological progress, the eurosystem has defined four key action points it will work on in the run up to 2020 and beyond. the first is to explore synergies between target2 and t2s, with the goal of offering a single gateway to the two platforms and enabling target2, a system of the 90s, to benefit from some state - of - the - art features currently available for t2s, a system of the last ten years. what will be the design and the needs of a system for the next decade? bis central bankers ’ speeches the second is the provision of new target2 services. we have recently conducted a market consultation on functional and business opportunities of our future real time gross settlement ( rtgs ) system. in this consultation, openness to new technologies was one of key components in the investigation of technological opportunities. the replies to the consultation are currently being analysed. the third is to prepare for the enhancement of target2 services with instant retail payments, at least in the settlement layer taking into account the clearing layer solution. in 2014, the euro retail payments board ( erpb ) identified the need for at least one paneuropean instant payment solution for euro that is open to any payment service provider in the european union. by november 2017, end - user solutions for instant payments in euro should be made available at the pan - european level by the payment service providers. the present efforts focus on p to p schemes. but they would lay the foundation for more ambitious b to b instant payment solutions. the fourth action point sets out to review the harmonisation of eurosystem arrangements and procedures for collateralisation. further progress is needed in this area