The European Central Bank (ECB) states that it is launching a two-year investigative phase that could result in the development of the digital euro. ECB President Christine Lagarde believes that the ECB should be prepared to respond to people’s demands for digital currencies and come up with a European solution that “will not jeopardize the whole banking system”.
Lagarde confirmed the ECB’s plans to respond to the demand for digital currency with the digital euro
The President of the European Central Bank (ECB) Christine Lagarde spoke about the digital currencies of the Central Bank (CBDC), especially the digital euro, in an interview last week with Klaus Schwab, founder and executive chairman of the World Economic Forum.
After the interview, Lagarde wrote on Twitter: “We at the ECB believe that we should be prepared and have the technology to respond to people’s demands. That is why we are launching a two-year phase of collecting information on the digital euro. “
The ECB’s website states:
“We are now beginning to explore what the digital euro might look like. This investigation phase will begin in October 2021 and last for about two years.
We will look at how the digital euro could be designed and distributed to merchants and citizens, as well as how it will have an impact on the market and any changes in European legislation that may be needed. ”
ECB chief Lagarde explained to Schwab: “If customers prefer to use digital currency over cash, it should be available.”
“We should respond to this demand. And to make sure that we have a European solution that is secure, accessible on good terms, that can also be reasonably used as a means of payment and does not jeopardize the entire banking system. ”
Lagarde continued: “That is why we decided to continue the two-year experiment to ensure that we can really respond to this demand, we will examine: Availability, just as cash is available and will continue to be available, but it will be consumer preferences; safety and security of equipment; user friendliness; cheap costs; and trading patterns that will be recognized and accepted not only in the euro area but worldwide. “
“Once the investigative phase is over, we will decide whether or not to start developing the digital euro. We would then develop and test possible solutions in collaboration with banks and companies that could provide technology and payment services. ”
What do you think about the creation of the digital euro?