But this technology means at the same time that bitcoin is very ineffective to use, as each payment requires large amounts of time and energy. Nor is there anything to limit the supply of copies of bitcoins in the form of other cryptocurrencies. So-called stablecoins are instead based on borrowing credibility from state money by promising full back-up in a state currency. 11 However, it is very difficult for a totally private currency to gain the same credibility as state money enjoys. What do all of these challenges and changes mean for us central banks? Well, we must also adapt our activities to the new environment. This is nothing new for an 9 This has also been done at EU level, for instance through the PSD2 legislation, which enables payment service  providers, which do not have their own deposit accounts, to offer payment solutions initiated from bank accounts. This increases the circle of companies that can offer payment products. 10 For further information on this, see the CPMI report “Non-banks in retail payments” (2014). 11 For more information on stablecoins, see Arner et al. (2020). 6 [35]  institution like the Riksbank, which has existed for more than 350 years. It is difficult to survive for so long without being able to adapt. But what is new this time is how quickly we may need to adapt.
Experience has demonstrated that we have to prepare for exceptional situations, and I would not exclude anything, and equally I will not pre-commit to anything ex ante. We'll always look at the situation on the basis of our own analysis, taking everything into account. China Finance: The EU member countries have endorsed somewhat coordinated fiscal stimulating packages. What's your view on the impact of large scale fiscal stimulus on the short and medium term growth and on the soundness of government finance in view of the Stability and Growth Pact? Indeed some Euro members sovereign debts have been downgraded recently as they are seen as overindebted. How serious negative impacts could this have on the credibility of the monetary union, given that the ECB has no fiscal power? Trichet: The most recent forecast of the European Commission shows that this year the budget deficit in the euro area countries will reach an average of 4%, with 7 countries out of the 16 above the 3% threshold. Its important to emphasise that this situation should be temporary and reversed as soon as possible. It should not be forgotten that the rules of the SGP are very important for the cohesion of the euro area. These rules are also underpinned by strong financial and economic principles. Governments have to take into account the fact that if their citizens consider that the fiscal policy of their government would not be sustainable in the long term, confidence would drain away.