European Central Bank President: Hopes for the development of digital currencies, will not prevent private companies from participating

ECB President Christine Lagarde said the ECB was eager to expand its role in developing central bank digital currencies, but that did not mean that private companies could not join.

Lagarde told the French business magazine Challenge in an interview on Wednesday that the European Central Bank wants to play an active role in cryptocurrencies. Lagarde said that as companies and individuals make more cross-border payments, the bank will continue to study "the feasibility and advantages of central bank digital currencies."

Lagarde has previously said that the European Central Bank should "go ahead" in central bank digital currencies. The European Central Bank does not want to block cryptocurrencies created outside Europe. She mentioned that "the central bank should not block or exclude solutions led by the private market to achieve fast and efficient retail payments in the euro area."

Lagarde believes that the central bank's digital currency may have a significant impact on the EU's financial sector and future monetary policy. The European Central Bank set up a cryptocurrency working group last month that will work closely with central banks in the euro zone to understand the benefits and costs of central bank digital currencies.

The Libra project announced by social media giant Facebook last year set off a wave of central bank digital currencies around the world. Most central banks view cryptocurrencies, central bank digital currencies, and fiat currencies as mutually exclusive and competitive relationships. The outgoing Bank of England Governor Mark Carney said that the central bank's digital currency supported by multiple fiat currencies is likely to replace the US dollar as the world's major reserve currency.

IMF chief economist Gita Gopinath believes that cryptocurrencies, including central bank digital currencies, lack key infrastructure and global recognition and cannot replace the US dollar.

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Author Liang CHE

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