##e and what business options to offer intermediaries. for a digital euro to be designed and adopted successfully, it must be a collective endeavour. so we are stepping up our engagement with all stakeholders, from banks to payment companies, and from merchants to society at large. and at every stage of the project we will continue to engage with the european commission ( which recently launched a consultation on the digital euro ), the european parliament and the finance ministers of the euro area countries. defining the legal framework will entail reconciling trade - offs arising from several objectives, such as the right of individuals to confidentiality versus the public interest in maintaining the level of transparency required to combat illicit activities, or the benefits of allowing the digital euro to be widely used – also internationally – versus the need to safeguard financial intermediation and stability. but there are ways to resolve these trade - offs, as i have discussed in previous speeches. finally, at the end of 2023 we could decide to start a realisation phase to develop and test the appropriate technical solutions and business arrangements necessary to provide a digital euro. this phase could take three years. conclusion let me conclude. the complementarity of public and private money has guaranteed stability, competition and innovation for decades. the ongoing changes in technology, geopolitics and user preferences must not herald the demise of this careful balance, but rather a chance to extend its success to the digital age. central bank digital currencies will allow public money to continue to play its role in anchoring the stability of the payments system and contributing to its efficiency. and private money will add innovation and diversity to this foundation. the coexistence of public and private money can continue to be a win - win situation – perhaps even more so in the digital age. 1. a payment system based on technologies and practices designed, managed and supervised elsewhere would undermine authorities ’ ability to exercise their supervisory control. a situation in which the digitalisation of payments leads to most prices being quoted in a foreign or private unit of account would greatly reduce the central bank ’ s ability to influence monetary and financial conditions. 2. although many people are unaware of the differences between public and private money, they do know that banknotes protect them from a potential default by their bank. 3. the use of central bank money in payment systems puts the value of private money to the test every day by checking their convertibility into the defined unit of value, so preserving confidence in the currency 4.

speech public money for the digital era : towards a digital euro keynote speech by fabio panetta, member of the executive board of the ecb, at the national college of ireland dublin, 16 may 2022 it is a pleasure to be here with all of you today to talk about the digital euro. when we launched this project, we made it clear that this is a common european enterprise. our collective effort is key to the preparation and eventual success of a digital euro. i would like to take this opportunity to thank commissioner mcguinness and the president of the eurogroup, mr donohoe, for the excellent collaboration. as we prepare to potentially issue a digital euro, we want to engage with and listen to stakeholders and society at large. so i would like to thank the national college of ireland for hosting us today and giving us the opportunity to discuss this project with you. and i look forward to talking to the students who are here today. young people will play a key role in the adoption of a digital euro and we need to hear their perspectives to make it a success. we live in turbulent times. as we face the most serious geopolitical crisis since the cold war, old certainties are increasingly being challenged. the invasion of ukraine has cast further doubt on the reliability of a global order that enabled unprecedented economic interdependence. in the financial realm, old certainties are also beginning to falter. digital technologies, changing payment habits and the race for payments supremacy are testing the complementarity of public and private money, which has long formed a cornerstone of our monetary system. today i will argue that to preserve this symbiosis, public money must keep its role as a monetary anchor in the digital era. a digital euro would fortify our monetary sovereignty and provide a form of central bank money for making daily digital payments across the euro area, just like cash for physical transactions. to succeed, a digital euro will need to add value for users, foster innovation, and enjoy strong political and societal support. preserving the role of public money our monetary system is based on the complementarity of public and private money. central banks provide a trusted and stable monetary base on which intermediaries such as banks build new payment and financial services. this coexistence has been a powerful driver of stability and innovation. but digital disruption and the declining use of cash – the only form of sovereign money currently available to the public – are threatening to upend this balance.