At the end of December 2020, Germany’s net external assets stood at €2,077 billion, thus amounting to almost 62% of nominal gross domestic product (GDP). Both German claims and liabilities vis-à-vis non-residents continued to rise considerably in 2020.

Introducing central bank digital currency (CBDC) is not an end in itself, believes Jens Weidmann. Rather, a digital euro needs to provide a clear value added to the citizens of the euro area. “CBDCs should only be issued if the perceived benefits outweigh any potential drawbacks or risks,” the Bundesbank President said in a speech at a virtual conference.