The European Central Financial institution (ECB) says it’s “beginning to examine” a digital euro by launching a two-year investigation. ECB President Christine Lagarde believes the ECB should be ready to respond to people’s demands for digital currencies and come up with a European-based solution that “does not jeopardize the whole banking system.”
Lagarde Unveils ECB’s Plans to Reply to Digital Foreign money Demand With Digital Euro
The president of the European Central Bank (ECB), Christine Lagarde, talked about central bank digital currencies (CBDCs), particularly the digital euro, in an interview last week with Klaus Schwab, founder and executive chairman of the World Economic Forum.
Following the interview, Lagarde tweeted: “We at ECB imagine that we must be prepared and have the expertise out there to answer individuals’s calls for. That’s why we are launching a two-year investigation into a digital euro.”
The ECB’s website states:
We are actually beginning to examine what a digital euro would possibly appear like. This investigation phase will start in October 2021 and last for about two years.
“We are going to have a look at how a digital euro could possibly be designed and the way it could possibly be distributed to retailers and residents, as well as the impact it would have on the market and the changes to European legislation that might be needed,” the European Central Bank detailed.
ECB chief Lagarde additional defined to Schwab, “If prospects desire to make use of digital foreign money quite than have banknotes and money out there, it must be out there.” She opined:
We should respond to that demand. And ensure that we’ve got an answer that’s European primarily based, that’s safe, that is secure, that is available under friendly terms, that can be used as a means of payment at reasonable terms as well and does not jeopardize the whole banking system, which must be half and parcel of the proposal.
Lagarde continued: “So that’s the reason why we’ve decided to go ahead with a two-year experiment to ensure that we can actually respond to that demand: Availability, simply as money is offered and can proceed to be out there, however it will likely be a client’s desire; the security and safety of the system; user-friendliness; low-cost price; and methods of transacting enterprise that can be acknowledged and accepted not solely within the euro space, however world wide.”
The ECB clarified:
Once the investigation phase has ended, we will decide whether or not to start developing a digital euro. We’d then create and check doable options, working along with banks and corporations which might present the expertise and the cost providers.
