The prospect of Brexit and our future relationship Let me say from the outset that Brexit is and remains bad news, not only for the United Kingdom, but also for Europe. But we respect the British choice, whatever it turns out to be. At this stage, both the British and Europeans are faced with great uncertainty surrounding the outcome. We are still hoping for a deal, but we have to be ready for a no-deal and all the risks it entails. Supervisors both at national and European levels have encouraged and monitored the implementation of contingency plans by the financial industry: on our side, we are ready. Let me add one word on the future relationship between the UK and the European Union. After Brexit, we will obviously no longer belong to the same European club, but we will hopefully remain close partners and friends. The UK will continue to participate in international forums – such as the G7, G20 FSB, BIS, etc. – where cooperation will be much needed to face our common challenges such as financial stability, digitalisation and the regulation of Bigtechs, as well as the challenge of green finance. In a context where the multilateral order is being put at risk, let me express the wish that the UK, together with the EU, may resolutely strive to renew multilateralism.
In addition, if issuers of stable coins also want to offer banking services such as deposits, financial investments and loans, then they will have to obtain a banking license in all countries where they operate. Otherwise these activities would be illegal. Stable coin projects reveal gaps in existing cross-border payment systems. Hence, at the European level, we should aim at promoting a genuine European strategy for retail payments. Payments are no longer a mere boring back-office technicality. They are innovative, and they provide two strategic assets: data, and daily customer relations. The raw truth however is that the European payments market is already dominated by non-European stakeholders. Furthermore, the growing role of non-European digital firms – be they American or Chinese – offering payments solutions should be taken seriously. Despite the creativity of the European ecosystem of payments, our market remains too fragmented. We don’t have much time left. We – the Eurosystem and the Banque de France – call for the creation of pan-European payment solutions, building on a common brand and on a state-of-the-art instant payment such as the Target Instant Payment Settlement infrastructure (TIPS) managed by the Eurosystem, and contributing to much more efficient international payments including for remittances. Some also suggest that the right answer to Libra is accelerating the creation of a Central Bank digital currency (CDBC). This is a scintillating subject, but a separate one.