the question of whether the legal tender status of a banknote is undermined if limits on cash payments make it impossible to use a certain denomination in transactions14. this would be tantamount to abolishing that denomination. but only the governing council of the ecb can make such decisions about the denominations of euro banknotes, and that includes the decision on whether to discontinue certain denominations. so there must be scope for all denominations of the legal tender to be used, otherwise this competence of the governing council would be undermined. 3 / 5 bis central bankers'speeches general, non - sector - specific limits on cash which largely preclude the use of a denomination are therefore likely to be very difficult to justify. in this context, i would like to comment on our decision on the €500 banknote. we have decided not to issue a €500 banknote in the second series of euro banknotes. however, €500 banknotes from the first series – which some europeans probably have under their mattresses – retain their status as legal tender. so people need not worry that their €500 banknotes will lose their value and can continue to use them as a means of payment. ultimately, the treaty includes a limit to limits on cash by assigning legal tender status to the euro banknote denominations as determined by the governing council of the ecb. we at the ecb monitor compliance with this provision. we would also intervene – but fortunately have not yet had to – if there were cases of discrimination against cash as legal tender compared with alternative private payment methods. this could happen, for example, if a payment fee were to be levied. you will recall that a core feature of legal tender is that banknotes must be accepted at their face value. anyone who has paid by card when booking a flight is aware of the difference. in the case of card payments, additional payment fees are allowed and are standard practice. conclusion : what are the implications for our activities within the eurosystem? i will conclude by saying that printed euro banknotes will retain their place and their role in society as legal tender for a very long time to come. there is no viable alternative to euro cash. there is good reason to believe that banknotes don ’ t only have to take the form of printed paper, cotton or polymer. however, printed banknotes will remain our core business. and if there is public demand for digital central bank money, this should only be a technical variant of

the socially vulnerable or minors, allows people to participate in society and, for example, allows children to learn how to handle money. in particular, when socially vulnerable people use cash, they face none of the barriers involved in applying for a credit card or, despite all their efforts, opening a current account. cash as legal tender provides security and protection cash “ always works ”. if alternative means of payment are no longer possible, e. g. because of a power or network failure, society can continue to function because of cash – in any case as long as the atms work or we manage, for example, in times of crisis to replace this infrastructure unbureaucratically. cash thus clearly enhances the resilience of society and ensures its functioning particularly in critical periods. many people use cash to buy everyday items, but not to pay larger sums. they cleverly weigh up the risks, burdens and benefits, such as protecting their privacy by making anonymous cash payments. the statistics show that “ average ” europeans have about €1, 600 net at their disposal every month. once rent and other fixed costs have been deducted, many people evidently carry out “ cash - suitable ” transactions above all. of course, “ shoe leather costs ” play an important role in people ’ s calculations, such as the distance from an atm or the acceptance of euro cash abroad. people who frequently have to handle large sums of money or who, for business or private reasons, often ( have to ) stay in other currency areas may find it practical to make their payments with a card and not to have to go first to an atm or a bureau de change. but that certainly doesn ’ t mean that these people – especially here in germany – would be willing to give up their cash. what is the role of the ecb and the eurosystem in protecting the legal tender? the ecb, as the european institution at the heart of the eurosystem, has a particular role to play, and not just in terms of monetary policy in general. as the central bank which authorises the issuance of euro banknotes, 8 the ecb is also responsible in particular for protecting the status of 2 / 5 bis central bankers'speeches euro cash as the sole legal tender. this includes guaranteeing the existence of euro cash and its usability as legal tender. in fulfilling these tasks, the ecb ultimately ensures that people can go about their lives, with their fundamental rights protected, using euro