the needs of europeans. today, i will discuss the main effects a digital euro could have on banking intermediation, financial stability and the international financial system. and i will consider some key design options that could address the risks involved. benefits in the context of the digitalisation of financial services the increased use of the internet, supported by rapidly growing computing power, has affected the entire economy. in the field of payments and financial services, the past decade has seen a rising number of providers and innovative technologies and products. at the same time, we have seen a profound shift in payment preferences, with the use of cash in retail payments declining. [ 3 ] even before the pandemic, one in two europeans said they would prefer to pay digitally in a shop. [ 4 ] the pandemic has accelerated this trend. [ 5 ] this is the first reason why we are working on a digital euro : combining the safety of central bank money and the convenience of a digital means of payment in order to satisfy consumer preferences. https : / / www. ecb. europa. eu / press / key / date / 2021 / html / ecb. sp210210 ~ a1665d3188. en. html 2 / 14 10 / 02 / 2021 evolution or revolution? the impact of a digital euro on the financial system another reason is that while digitalisation generates greater efficiency and lower costs, it may also pose risks for consumers and the financial sector. the global tech giants – or big techs – are setting the pace of change in the provision of financial services in various ways. they are seeking to sidestep traditional distribution networks – including payment systems – through their control of social media, online marketplaces and mobile technologies. [ 6 ] this could lead to the rapid and large - scale take - up of the financial services offered by big techs, both domestically and across borders. [ 7 ] big techs are also seeking to expand the reach and improve the quality of financial intermediation through the large - scale processing of proprietary consumer data generated by their core activities. [ 8 ] they could use such data to reduce the information asymmetry that lies at the heart of financial intermediation. data - driven models could jeopardise privacy and pose the risk of personal information being misused. moreover, integration with other services provided by big tech companies may threaten competition through tying, bundling, cross - subsidisation and winner - takes - all

gabriel makhlouf : opening remarks - economics winter workshop opening remarks by mr gabriel makhlouf, governor of the central bank of ireland, at second annual " economics winter workshop ", organised by the central bank of ireland, dublin, 20 december 2024. * * * good morning everyone, it is my great pleasure to welcome you all to the central bank of ireland for our second annual " economics winter workshop. " building on the success of last year's inaugural event, it is fantastic to see this workshop going from strength to strength. the program ahead promises a very interesting array of speakers and papers, addressing some of the most pressing issues at the forefront of our work here in policy institutions. this workshop is being held following a turbulent few years for countries around the world, including ireland. policymakers have navigated the profound economic disruptions of the covid - 19 pandemic, the geopolitical upheaval following russia's invasion of ukraine, and the resulting surge in inflation - levels not seen in most advanced economies since the 1970s. at last week's ecb governing council meeting, we made the decision to cut our three policy rates by 25 basis points, reflecting confidence that the disinflation process remains on track. for us, sound policymaking rests on a foundation of robust, evidence - based research. only by delving deeply into understanding individual questions can we fully comprehend and address the complexities of the broader economic landscape. research plays a central role in fulfilling our mandate at the central bank of ireland. earlier this year, for example, our thematic signed article on housing in ireland demonstrated how rigorous internal research directly informs and enhances our policy advice and communication. this thematic article approach is something we plan to continue into the future, exploring some of the most relevant questions for the irish economy. today's sessions and policy panel reflect the four main pillars of our research agenda : the small open economy, new horizons, central bank frameworks, and the evolving financial system. these themes guide our efforts to navigate a rapidly changing global economy. while we are fortunate to have highly skilled researchers within the bank, we recognize that collaboration with external academics and institutions strengthens our capacity to do policy - relevant research. initiatives such as our research affiliates program are helping us forge valuable connections, and we were delighted to host our first two visiting scholars this year. looking ahead, we are excited to welcome several more scholars and research affiliates next year as part of our continued commitment