European Central Bank President: Suggests Digital Euro Targets to Ensure Central Bank Leadership in Digital Currency

According to Bitcoinist, European Central Bank President Christina Lagarde said at her first policy meeting that the European Central Bank should set the goals of the digital currency working group by mid-2020.


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Digital Euro target

On December 12, the ECB Council convened a meeting on benchmark interest rates and monetary policy. Afterwards, the new president of the European Central Bank, Lagarde, and the European Central Bank's deputy governor Luis de Kindos held the first press conference.

Lagarde said that the European Central Bank should be "far ahead" in the digital currency field and hoped to set related targets by the first half of next year.

Before developing the digital euro, the European Central Bank must set priorities and set specific goals for the working group. Lagarde stated:

Are we working to reduce costs? Are we intentionally bypassing the middleman? Are we trying cost-free inclusive finance? We can pursue a range of goals.

Despite not mentioning bitcoin, she acknowledges that demand for stablecoins is high. In addition, Lagarde mentioned the interest of Canada and the Bank of England in stablecoins.

I firmly believe that, based on the developments already in place, we'd better be a leader in central bank digital currencies (not Bitcoin). Because, in the face of the significant demand for stablecoins, we must respond.

ECB considers pros and cons of digital currencies

Last month, the European Central Bank considered issuing a digital currency. The proposal is part of a draft ban on "high-risk" crypto projects. The European Central Bank aims at the global digital currency Libra developed by Facebook, and European leaders have repeatedly criticized the project. Now, the European Central Bank is discussing the pros and cons of issuing central bank digital currencies.

With the advent of the euro digital currency, consumers will have an alternative cheap and fast payment method. This will have a significant impact on the European Central Bank's fiscal policy, for example, the central bank will be able to directly inject funds into the economy to achieve inflation goals.