the digital euro for tomorrow ’ s payment systems bafin - tech 2022 18. 05. 2022 | berlin | burkhard balz 1 introduction 2 why might a digitial euro make sense? 3 what could a digital euro deliver? 4 when might a decision on the digital euro be made? 5 conclusion 1 introduction ladies and gentlemen, thank you very much for the warm welcome and your keen interest in bafintech 2022. this illustrates once again how important it is to exchange ideas in person. this is particularly crucial when it comes to the innovative topics we are planning to discuss today and tomorrow. researchers from columbia and stanford universities have recently published a study on this topic. it finds that the limited visual scope of videoconferencing constrains cognitive processes, and thus inhibits creativity. by contrast, creativity is better able to flourish when we interact in person, where thoughts can “ branch out ” and disparate information can be combined. and we will need creativity when it comes to designing the payment systems of the future. central bank digital currency, such as a digital euro, could play a key role here. central banks all over the world are working on concepts and prototypes. nigeria and the bahamas have already introduced a central bank digital currency. china is conducting extensive pilot tests. and so today i would like to talk about “ why ” a digital euro might make sense, “ what ” it could do and “ when ” we might be able to make a decision about it – in other words, the “ timing ”. 2 why might a digitial euro make sense? so “ why ” do we need a digital euro? the first reason is to do with strategic sovereignty in european payments. ecb ( european central bank ) president christine lagarde summed the objective up neatly, saying : “ in a more digital economy, we also need to ensure the strength and autonomy of european payment systems. ” although we can send and receive sepa ( single euro payments area ) payments throughout europe, we are still lacking a simple, universal, pan - european payment solution from european providers. instead, once we cross an intra - european border ( if not before ), we rely on international card systems and internet payment procedures provided by bigtech firms in both bricks - and - mortar retail and online trading. bigtech players benefit from the reach of their platforms and are able to offer customised solutions to a wide range of user groups. however, they often set their own rules

amando m tetangco, jr : improving lives through better access to credit speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the launching of e - rediscounting in mindanao, davao city, 20 july 2007. * * * maayong udto sa inyong tanan! honrable members of the monetary board ; fellow bankers ; business leaders of mindanao as represented by the chamber of commerce and industry, the small and medium enterprise development council and micro - finance council ; special guests ; government officials who are here today, mayor lobrigat ; my colleagues at the bangko sentral ng pilipinas ; friends ; ladies and gentlemen – i am very pleased to lead the launching here today of the bsp ’ s electronic or e - rediscounting system. only a few weeks ago at the mindanao peace and security summit in cagayan de oro city the president identified two key priority programs for mindanao, which is particularly relevant to our program today. the first priority is to increase the funding for key government economic programs in mindanao. the second is to strengthen the institutions of government to promote economic prosperity in the region. given this, the launching of the bangko sentral ’ s e - rediscounting system here in mindanao is indeed very timely and appropriate. with this electronic loan refinancing facility, we expand and facilitate access to credit of countryside areas in mindanao where there are micro, small and medium enterprises, as well as exporters. this should stimulate economic activities in the local communities here. so far, the seven - month track record of our e - rediscounting system has been positive. since its initial launching in manila in december, the number of participating banks in our erediscounting system has increased from 88 to 129 while the total loans processed and released during this period has reached an unprecedented level of over p14 billion. the importance that the monetary board attaches to this initiative is clearly demonstrated by the presence of our monetary board members in this launching today and let me acknowledge them : first, mbm vicente valdepenas, jr., mbm raul boncan, mbm juanita amatong, mbm alfredo antonio, and earlier today mbm nelly favis - villafuerte was also here. the bsp top management is here with us as well today