, but they actually have something very strong in common : ensuring the european banking and payment sector is fit for purpose in a rapidly changing technological landscape. looking ahead, as abraham lincoln once put it, ‘ the best way to predict the future is to create it ’. let us do it together, as talented and committed europeans. i thank you for your attention. villeroy de galhau, f., anchors and catalysts : central banks ’ dual role in innovation, speech, 27 september ii three progress reports are publicly available on the ecb website, the third and latest of which was released on 24 april 2023 iii european central bank, digital euro – prototype summary and lessons learned, 26 may 2023 iv the eurosystem will not know any details of any transaction v the european commission ’ s legislative proposal on retail cbdc is expected on 28 june 2023 vi be it for account holding, payments or access to a mobile app vii villeroy de galhau, f., big techs in finance : a bildungsroman that is far from over, speech, 9 february 2023 viii panetta, f., a digital euro : widely available and easy to use, speech, 24 april 2023 i

first concerns the resolution of large or even systemically important banks. the provision of potentially significant amounts of liquidity in times of crisis is a prerequisite for successful resolution. the framework for the ecb to provide " eurosystem resolution liquidity " has yet to be built. the other priority, at the other end of the spectrum, is to shift from resolution " for a minority " - a far too small minority of cases : two in the last nine years - to resolution " for the majority " of cases, including small and medium - sized banks. the european commission's proposal for a revised crisis management and deposit insurance ( cmdi ) framework is a step in the right direction. yet, level - playing field must be ensured not to give unfair advantage to smaller banks ; and greater pooling between the resolution fund and deposit guarantee schemes should not lead to large companies potentially benefiting from the same protection as the smaller deposits of individuals or smes. ii. the digital currency for a changing world let me now turn to my second topic : the technological evolutions underway in the fields of finance and payments, which has led us, the eurosystem, to have launched an investigation phase on a retail central bank digital currency ( cbdc ) under the sponsorship of president christine lagarde and my friend and colleague fabio panetta. pending an approval by the governing council, a preparation phase will then start at the end of this year, before a potential and gradual launch from 2027 or 2028 onwards. i am aware i am entering here a less consensual ground, listening to banks ’ doubts along two arguments ( i ) the cbdc would be a ‘ solution in search of a problem ’, the ‘ why? ’ question ( ii ) and the cbdc would be a competitor to commercial bank money. the purpose : a digital banknote about the ‘ why? ’, i can imagine that two centuries ago, there were many voices questioning the need for a paper banknote – at that time a huge technical innovation – to be issued along the good old gold and silver coins. today, it all page 4 of 6 boils down to one simple question : as everything is becoming digital, why should central bank money be the only thing to remain in paper? as many of you know, central banks have also – and fortunately so – innovation in their dna i, keeping pace with technological disruptions. the eurosystem has made headway on the design of the digital