Christine Lagarde: “The digital euro could be released in the next two to four years”

Christine Lagarde: “The digital euro could be released in the next two to four years”

13.11.2020
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European Central Bank President Christine Lagarde said she believed the EU’s monetary authorities could issue a digital euro in the next two to four years.

At an online conference with Fed Chairman Jerome Powell and Bank of England President Andrew Bailey, Christine Lagarde said it will take a long time to develop a digital euro.

It is necessary to develop not only the basic technology, but also measures to combat money laundering and prevent the financing of terrorism. She noted that the Central Bank of China has been working on a digital version of the yuan for several years. Lagarde said:

“We may well start moving in this direction. I suspect this will happen in the next two to four years.”

Earlier this month, the ECB launched a poll in which it invited EU citizens to express their position on the issue of the digital euro. Earlier, the European Central Bank presented a report, which indicated four conditions under which the digital euro will be issued.

“If the digital euro is to facilitate cross-border payments, we must explore this concept. The digital euro will not replace cash. It will be an addition, ” Lagarde said.

For his part, Fed Chairman Jerome Powell noted that the US Central Bank is evaluating the merits of the digital dollar, but has not yet decided to issue its own cryptocurrency and is unlikely to release it in the next few years.

The Governor of the Bank of England said there could be privacy concerns for privately issued stablecoins and government cryptocurrencies could be “the answer to this problem.” Bailey previously stated that he is in favor of global regulation of stablecoins.

Recall that according to the latest report from analysts at Deutsche Bank, government cryptocurrencies will replace cash. Central bank digital currencies can also eliminate intermediaries in the banking system, which will have serious consequences.

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