11 The Bank of England survey found that respondents preferred interest-earning assets to back stablecoins intended as a store of value, but other models could be appropriate when stablecoins were used largely for transactional purposes. Responses to the Bank of England’s Discussion Paper on new forms of digital money (March 2022) 12 Hauser, Andrew (2019) Waiting for the exit: QT and the Bank of England’s long-term balance sheet, remarks at the European Bank for Reconstruction and Development,  London; Åberg et al. (2021) “Demand for central bank reserves and monetary policy implementation frameworks: the case of the Eurosystem ”, ECB Occasional Paper No. 282. 13 Bank for International Settlements, Central bank digital currencies: financial stability implications (September 2021). 14 Bank of England, New Forms of Digital Money (June 2021). 15 Norway and Sweden have seen large declines the demand for currency in recent years. In the U.S., the extent to which faster, or new forms of payments would affect the  demand for currency may be smaller even as the use of cash in U.S. consumer payments declines, given the important international demand for U.S. dollars. 16 Some have argued that stablecoins might not be the best assets to exchange on a distributed ledger and that tokenized deposits might be a better option. See Rod Garratt,  Michael Lee, Antoine Martin, and Joseph Torregrossa, The Future of Payments Is Not Stablecoins, Federal Reserve Bank of New York Liberty Street Economics, February 7, 2022.
However, what seems more challenging to me is being able to reach the delicate balance between achieving our policy objectives and, at the same time, avoiding collateral damage, to the transmission of monetary policy and particularly to the stability of the financial system. It would probably be short-sighted to think that a CBDC would have no impact on the financial system. Of course it may replace cash to some extent, but it is difficult to believe that it will not attract a fraction of deposits as well. This means that a CBDC could have implications for financial stability, monetary policy, and the allocation of credit to the real economy. However, dispensing with its issuance in order to preserve the status quo is not an option either. Let me explain. We are in the middle of a  3/6  BIS - Central bankers' speeches  whirlwind of change, so the question should not be "what should we do to avoid change?" but rather, "what should we do to ensure the stability of the financial system, in the midst of change?". That said, CBDCs may come in different shapes and forms; therefore, adequate design and implementation are needed in order to minimise their impact. This is not a minor task and requires careful analysis. There are many interlinked design options and they all have to be considered, both individually and holistically, in order to ensure they are a perfect fit. This is, in fact, what the Eurosystem is currently doing in the context of the digital euro.