are those that are competitive and offer a unique product. i view the world of payments in very much that spirit. to me, digital payments offer exciting prospects. but that does not necessarily imply the extinction of existing payment methods. it may very well actually increase the diversity of payment methods. cash offers these unique forms of independence from social and electronic networks, which suggests to me that it will continue to enjoy great popularity in the euro area. i now look forward to having fruitful discussions with all of you. thank you. footnotes : 1. deutsche bundesbank ( 2018 ), payment behaviour in germany in 2017 – fourth study of the utilisation of cash and cashless payment instruments. 2. j. l. korella and w. li ( 2018 ), retail payment behaviour and the adoption of innovative payments : a comparative study in china and germany, journal of payment systems and strategy, vol. 12, no 3, pp. 245 - 265.

financial loss, personal privacy and a clear overview of spending are crucial features that households expect from payment instruments. cash scores favourably in all of these areas, according to our surveys. my interpretation of these results : german households value independence – and physical cash offers three unique forms of independence, which distinguishes it from digital payment systems. first, independence from one ’ s socio - economic background. • cash is tactile and does not require any technical equipment. the use of cash is easily understood across the generational divide. it is this haptic nature of cash, which, in my view, is an important element of strengthening financial inclusion. • ensuring access to cash may be particularly relevant in rural areas with insufficient banking or technological infrastructures. cash is, in that sense, also a means of safeguarding social cohesion. second, independence from technological ecosystems. • given the still fragmented payments landscape in europe, cash currently remains the one truly universal means of payment when it comes to p2p transactions in the euro area. • fintech companies are shaking up the traditional banking system in europe. these companies can often leverage their global reach and huge customer base. this may bring benefits for consumers, for instance regarding cross - border payments. but it also means that customers are becoming locked into particular payment ecosystems. cash offers an easy way out, at least for certain transactions. third, independence from social control and data collection. • as legal tender, cash is fully backed by the domestic central bank. • cash is the obvious choice of payment method when it comes to personal privacy. this strengthens individual freedom. at the end of the day, digital payment systems work by using personal data. collecting data is not harmful per se. but in the age of big data, collecting detailed data means obtaining valuable information which, in turn, makes it possible to construct patterns of individual behaviour. • from a consumer protection point of view, the question arises as to how much information is necessary to carry out a particular transaction. • from an economic point of view, personal data may be seen as an additional source of transaction costs to be factored in when comparing the underlying cost structures of different payment methods. 3 retailing – the source of future transformations? ladies and gentlemen, payment methods tend to evolve in stages. for example, the adoption of mobile payment solutions is typically preceded by the widespread use of credit and debit cards. this is the case in germany, where contactless payments have just started to catch on.