a digital euro, many respondents felt that a digital euro should be part of a digitalised society. the more sceptical attitude towards a digital euro was particularly pronounced among frequent cash users. 4 conclusion going forward, researchers and especially policymakers need to continue trying to reach out to various groups, including the general public, to communicate the features of the various forms of digital and physical central bank money, and how they differ from highly volatile assets that tend to give rise to far greater turmoil due to their large price fluctuations. cash has always conveyed a sense of being stable and trustworthy. i am therefore convinced that cash can and will have its place in the future, too. in fact, the long - term eurosystem strategy on cash is clear in that regard : if a digital euro were to be issued in the future, it would co - exist alongside cash. i now look forward to having fruitful discussions with all of you. i hope you have an enjoyable time at the conference and are able to exchange many valuable insights and ideas. thank you. 3 / 3 bis central bankers'speeches

would like to elaborate on what a central bank digital currency might mean for cash. 2 cash in times of crisis when economists talk about turmoil in markets, they are typically referring to unusually strong swings in asset prices. turbulence of that kind could arise, say, due to a sharp reassessment of perceived risks. in such a scenario, asset holders might be inclined to sell off large amounts of a particular asset as quickly as possible. by definition, the nominal return on cash is zero, but cash means liquidity and as central bank 1 / 3 bis central bankers'speeches money it offers that extra feeling of safety, particularly in times of crisis. demand for cash thus rises sharply during periods of elevated uncertainty. the covid - 19 crisis is no exception. in march 2020, when the german federal government was implementing the first nationwide lockdown, cash in circulation in germany increased by almost 21 billion euro. that represents a year - on - year increase of around 12 %. cash demand accelerated during the crisis, not just in germany but further afield, too. the increase was also not confined to isolated spikes during periods of lockdown, but occurred on a broader scale across countries. at the end of 2020, the overall value of euro banknotes in circulation was up by 11 % in the eurosystem. this annual growth rate is high by historical standards, considering a 5 % average increase over the past ten years. however, there is evidence to suggest that the use of cash as a means of payment has declined during the pandemic. we see that from the reduced numbers of smaller denominations that are flowing through the cash cycle in germany and beyond. at least with the recent easing of covid - 19 containment measures in germany, we have started to observe an uptick in cash lodgements at our regional branches again. there are also several surveys on payment behaviour that point to declining cash usage relative to digital means of payment. what does that imply for the role of cash going forward? in the middle of a crisis, that is hard to say definitively. many places where cash tends to be used frequently, such as cafes, outdoor events or street markets, have not been open as much during the crisis as they usually are. this has naturally placed a limit on the transactional role of cash during the pandemic. even so, the decline in cash usage during the pandemic has been more than offset by its important function as a store of value. cash offers a safe haven