- tiered system, which i have mentioned, have provided society with. to give an example, it is vital for cbdc to be designed in such a way that users'privacy would be preserved, showing respect for their lives as people. similarly, the sharing of roles between central bank money and private money as well as private firms'capacity for resource allocation and innovation should also be valued. last but not least, the digital features of cbdc carry the potential to create diverse values. how should we utilize cbdc to empower people and firms, and ultimately establish a new ecosystem, which would be brought about by cbdc adoption? exploring cbdc from such a perspective is equally important. closing remarks the main theme of this year's fin / sum is " building a bright future : fintech for happy growth. " underlying this is said to be the hope for and determination to build a better future by striking the right balance between ( 1 ) stable and sustainable economic growth and ( 2 ) people's happiness, while effectively utilizing novel technologies. the bank of japan has been proceeding with the pilot program for cbdc - my topic today - since 2023. we continue to engage in various efforts to envision the future of the overall payment system, including a panel discussion on the future landscape of wholesale payments scheduled to take place here tomorrow. for these efforts to serve as channels to " happy growth, " it is essential that we continue with our dialogue, as drawing on your experiences and wisdom is key to this bright future. we therefore kindly ask for your support as we pave the way forward. thank you for your attention. 3 / 3 bis - central bankers'speeches

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