Christine Lagarde Highlights Application of Digital Currency
On Nov 03, 2020
The European Central Bank published detailed report about the possible issuance of the digital euro. Christine Lagarde approved this on it officially.
The report was prepared by the Eurosystem High-Level Task Force on central bank digital currency (CBDC) and approved by the General Council on 2 October. Like other digital currencies, the euro will serve the people and the firms but in the form of digital euro. It is said it will improve the speed and security and it will be easy to use. It will complement cash, but it will not replace it. It means that people and firms will continue to use old euro banknotes. Central Bank will issue the regular cash in the case of need.
Christine Lagarde, ECB President, commented on that:
“The euro belongs to Europeans, and our mission is to be its guardian,”
“Europeans are increasingly turning to digital in the ways they spend, save, and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.”
Recently, Christine Lagarde brings the digital euro to the spotlight on her Twitter account.
It’s already been one year since I took up my role as President of the @ecb. It has been a difficult year for Europe and the world, but together we have achieved some important milestones that I believe are worth reflecting on. pic.twitter.com/b5mVA7t0xN
— Christine Lagarde (@Lagarde) November 1, 2020
ECB Works with National CB’s
The European task force combines the experts from 19 national central banks to work on a digital euro project and deciding about the possible issuance of the currency. The issuance of digital euro can pose some regulatory changes. Increase the effectiveness of the electronic payments they need to promote the usage of it. Fabio Panetta, the member of the ECB’s Executive Board and Chair of the task force, mentioned technology and innovation changes the way we work, and the digital euro will bolster Europe towards innovation.
The General Council has not made the final decision about whether issuing digital euro. Digital euro will be in the same functionality as the regular euro and will serve people as a simple accepted means of transaction.