President of the European Central Bank (ECB) Christine Lagarde has alluded to the possibility that Europeans may have access to a digital euro prior to her term expiring in 2027. She did, however, concede that accomplishing this would necessitate a quicker rollout than planned.
Before such a launch, she told reporters in Paris on June 7 that EU bodies must work together and create a unified framework.
“We are not the only ones working on this. The European Commission and the European Parliament will be critical, as they will give us the legal framework within which a digital euro would be issued,” she said, according to a transcript.
Lagarde Backs Digital Euro, Says ECB Must Be ‘Fit for the Future’
A digital euro would be the equivalent of digital central bank currency, providing a quick and easy way to make payments.
It would serve as the electronic equivalent of paper money. And just like regular coins and banknotes, it would be available to the general public with the support of the ECB.
Viewing the introduction of a digital euro by the ECB as a crucial step toward making the bank “fit for the future,” Lagarde indicated her support for the initiative.
She continued by saying that central bank money ought to be accessible online if Europeans prefer digital methods.
Europeans Warm to Digital Euro, But Privacy Concerns Linger
The digital euro appears to be attracting a fair amount of interest among Europeans. Given that the European Commission and the European Central Bank (ECB) have been promoting the idea, this is not surprising. Actually, according to a recent survey, half of Germans are amenable to utilizing a digital euro in addition to their present methods of payment.
Although the concept is becoming more popular in Europe, privacy concerns remain. This was previously acknowledged by ECB board member Fabio Panetta, who said that privacy will be taken into consideration when designing the digital euro. However, it probably will not provide the same degree of anonymity as cash does at the moment.
“We will try to replicate the features of cash that people appreciate, that citizens prefer. That is, maximum level of privacy,” he said.
Like Lagarde, Dr. Joachim Nagel, the president of the German central bank, does not anticipate a speedy introduction of the digital euro. He has forecast a later rollout, stating that 2028 or 2029 would be a more reasonable launch date.