It is also my hope that by establishing a robust global regime, we can mitigate the incentives for national regulators and supervisors to impose local rules that make it hard for globally active institutions to manage their operations on a global basis, thereby undermining the global integration of markets that has supported economic globalization. Over the next 12 to 18 months, regulators will be particularly busy in implementing these reform efforts. Broad legal statutes now have to be turned into specific rules and regulations governing business practices, conduct and operations. Doing this well – in particular, in a way that is sufficiently informed, deep and broad – will be very important. Basel III and the  1  Governor Daniel K. Tarullo, Comments on “Regulating the Shadow Banking System”. Brookings Panel on Economic Activity, September 17, 2010. 8  BIS Review 131/2010  Dodd-Frank Act are important markers on this road, but it will always be a journey to a neverreached destination of perfection. Thank you for your kind attention. I would be happy to take a few questions. BIS Review 131/2010  9
For example, we are investigating a waterfall functionality which would allow users to receive payments in digital euro above the holding limit by linking a digital euro account to a commercial bank account. The waterfall approach is a way of managing end users’ retail CBDC holdings via the automated conversion of retail CBDC in excess of a holding threshold into a bank deposit held in a linked commercial bank account chosen by the end user. See the digital euro glossary. Holding limits could also be differentiated by type of user, to account for the payment needs of citizens typically on the payer side and businesses that will mainly be on the receiving end of digital euro payments. 20. Panetta, F. (2022), “More than an intellectual game: exploring the monetary policy and financial  stability implications of central bank digital currencies”, speech at the IESE Business School Banking Initiative Conference on Technology and Finance, Frankfurt am Main, 8 April. 21. Broad engagement with market stakeholders will ensure that a digital euro meets users’ needs. A relevant set of initiatives have been put in place, including market contact groups, surveys and calls for expression of interest on the technical design features of a digital euro. ECB experts are also exchanging views on a digital euro with representatives from European civil society organisations and academia. See the ECB’s statement on stakeholder engagement.