ECB President promotes development of central bank digital currency

Text: Ana Alexandre Compilation: Damian Editor: Rose

European Central Bank President Christine Lagarde supports the European Central Bank's active participation in the development of the Central Bank's Digital Currency (CBDC) to meet the demand for faster, lower cost cross-border payments. In an interview with the French business magazine Challenges on January 8, Lagarde discussed the most likely threats to the global economy in 2020, including a decline in trade, a series of uncertainties, geopolitical risks and climate change. . Lagarde further stated that

The EU remains the world's most powerful economic and trading area, and it has great potential.

Don't be an observer in a changing world

When asked about the European Central Bank's commitment to exploring and developing the CBDC, Lagarde emphasized the urgent need for fast and low-cost payments, and she believed that (the European Central Bank) should be a leader in this area, rather than acting as a changing world In the observer. So Lagarde said:

The European Central Bank will continue to assess the costs and benefits of issuing a central bank digital currency, which will ensure that the public will still be able to use central bank currency even if the use of physical cash eventually decreases.

Lagarde recalled that the European Central Bank continued to review the feasibility, advantages and disadvantages of the CBDC, as this payment method may have an impact on the transmission of the financial sector and monetary policy. She specifically requested that the European Central Bank set up an expert working group to work closely with central banks to study the feasibility of establishing a euro area CBDC.

When asked about the current initiative to launch the CBDC at the European Central Bank, a representative vaguely told Cointelegraph:

We are looking at all aspects of the CBDC and in-depth analysis of the costs and benefits of this new type of central bank currency. It will take some time for us to communicate our conclusions.

Treat cryptocurrency friendly

Lagarde had previously shown a friendly attitude towards digital currencies, and said last December that the European Central Bank should lead the way in stabilizing currency demand. Last September, when Lagarde was still president of the International Monetary Fund and nominated as the next president of the European Central Bank, she claimed that she would work to ensure that institutions quickly adapt to the rapidly changing financial environment. At the same time, the European Central Bank remains open to the idea of ​​digital euro equivalents, but hopes to prevent citizens from holding too much digital euros.

19:00 UTC update on January 9: This article has been updated to include comments we received from ECB representatives after the initial release.

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