The European Central Bank (ECB) says it is “starting to investigate” 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 find a European solution that “does not endanger the entire banking system”.
Lagarde reveals plans by the ECB to respond to the demand for digital currency with the digital euro
The President of the European Central Bank (ECB), Christine Lagarde, spoke last week in an interview with Klaus Schwab, founder and CEO of the World Economic Forum, about the digital currencies of the central banks (CBDCs), in particular the digital euro.
Following the interview, Lagarde tweeted, “At the ECB, we believe we should be ready and have the technology in place to respond to people’s demands. That is why we are starting a two-year study on a digital euro. “
The ECB’s website states:
We are now starting to examine what a digital euro might look like. This investigation phase will begin in October 2021 and will last around two years.
“We will examine how a digital euro could be designed and distributed to traders and citizens, as well as the effects on the market and the changes that may be required in European legislation,” the European Central Bank said in detail.
ECB boss Lagarde explained to Schwab: “If customers prefer to use digital currency rather than having banknotes and cash available, it should be available.” She means:
We should respond to this demand. And make sure that we have a solution that is European based, that is safe, that is available on friendly terms, that can also be used as a means of payment on reasonable terms and that does not endanger the entire banking system, which should be part of the offer.
Lagarde continued, “So we decided to do a two-year experiment to make sure we could actually respond to this demand: availability as cash is and will be available, but it will be.” The Preference be a consumer; the safety of the device; User friendliness; cheap cost; and ways of doing business that are recognized and accepted not only in the euro area, but worldwide. “
The ECB has made it clear:
After completing the research phase, we will decide whether to start developing a digital euro or not. We would then develop and test possible solutions, in collaboration with banks and companies that could provide the technology and payment services.
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