A digital approach to finance is not merely limited to private actors. It extends to the entire financial ecosystem. And central banks are joining in, too. All around the world, we are exploring the risks and benefits of issuing central bank digital currency. The Eurosystem is looking into different concepts for a “digital euro”.
Real-time monitoring of the financial system is a fascinating vision for central banks. Just recently, at the “Bundesbank Innovation Challenge”, 10 start-ups pitched for the most innovative solution for risk monitoring at our institution. Innovation needs space – mental space, certainly, but also physical space.