According to Bundesbank President Jens Weidmann, central banks should beware of crowding out private payment solutions and should play a supportive role instead. Mr Weidmann pointed out that competition and regulation are essential for a good market outcome. As central banks provide the backbone of the payment system, they need to be at the cutting edge of technology, he explained. This, he emphasised to participants of a Bundesbank virtual conference, includes working on central bank digital currency.