Christine Lagarde said ECB would be exploring a possibility of launching its own digital currency
The European Central Bank (ECB) is considering the option of creating a Union’s proper digital euro with study results to be revealed in the coming weeks. Further analysis and likelihood of the project are subject of public discussion, said Lagarde, ECB’s president.
“The Eurosystem has so far not made a decision on whether to introduce a digital euro. But, like many other central banks around the world, we are exploring the benefits, risks and operational challenges of doing so,” Lagarde said. “The findings of a Eurosystem task force are expected to be presented to the public in the coming weeks, followed by the launch of a public consultation.”
Gathering in Berlin last week, top officials representing the block’s biggest economies reiterated the message that the ECB will be the only institution to issue currencies, while any other activities should not be allowed if they compromise the integrity of the financial system.
“This point is something that cannot be jeopardized or weakened by any kind of project including the so-called Libra project,” French Finance Minister Bruno Le Maire said on the matter.
The ministers are also concerned about lagging behind on the CBDC initiatives and vowed to discuss the benefits and challenges of the project in the nearest future. Back in January in an interview with “Challenges” magazine the ECB’s president made it clear that the agency was seeking an active role in the field of cryptocurrency, rather than taking a bystander approach, to respond to urgent demand for quicker and cheaper payments, especially cross-border transactions. Yet she underscored that the private market-led solutions for faster and efficient retail payments should not be discouraged.