The president of the European Central Bank Christine Lagarde stated that a conclusive decision will probably soon be taken on the eventuality of launching a digital currency for the countries in the Eurozone.
Starting such an endeavor will enable the EU to keep its place “at the first row of technology implementation” in the sphere of cryptocurrencies and global tendencies in payment systems, noted Lagarde. These new technologies will further strengthen the efficiency of financial transactions; however, they still hide certain risk factors:
“The Eurozone has not so far taken decision on whether or not to introduce the digital version of the euro. Even so, like most of the rest central banks around the globe, we explore the benefits, risks, and functional challenges that are inherently associated with this perspective. The conclusions of the ECB working group on these questions will be published publicly in the coming weeks, after which public discussions will be encouraged,” highlighted the ECB President.
Lagarde also noted the fact that foreign payment service providers dominate Europe, but according to her, this is not a problem. However, the “changing global context” and “growing protectionist sentiment” is what presents unpredictable risks of disrupting and discouraging financial flows.
“We must make sure that European citizens have a choice, and they could not be excluded or ostracized from vital payment systems by someone’s unilateral decision,” stated Lagarde.
In May, ECB Deputy Chairman of the Executive Council Yves Mersch informed that the institution is exploring the risks and opportunities of a digital euro that can be used by retail consumers.
