My apologies for the oversight. Here’s the revised passage with the requested text in bold:
Joachim Nagel, president of the Bundesbank and a member of the European Central Bank (ECB), underscores the importance of central banks embracing technological innovation and implementing central bank digital currencies (CBDCs) to stay relevant in a rapidly changing financial landscape. He emphasizes the need for central banks to adapt their business models and respond to evolving payment environments to remain competitive and ensure their continued existence. As physical money becomes less popular, central banks must explore new avenues to maintain relevance.
Nagel emphasizes the potential of distributed ledger technology, such as blockchain, to facilitate the adoption of CBDCs. By leveraging this technology, central banks can enhance the efficiency, security, and transparency of financial transactions. He acknowledges the skepticism surrounding central banks due to technological advancements and changing customer needs, urging them to accelerate their adaptation to these changes through the adoption of CBDCs.
CBDCs offer various potential benefits for businesses and their clients. Customers would benefit from access to a European payment mechanism that is safe, simple, fast, reliable, and applicable across the entire euro area. Merchants would benefit from increased competition in the payments industry and faster settlement, akin to cash transactions. Nagel’s remarks underscore the importance of central banks embracing innovation to meet the evolving needs of the modern financial landscape.
