The European Central Bank explores the development of its own digital currency
The European Central Bank does not want to remain a mere observer of the great financial changes in the world and is preparing to develop its own digital currency.
European digital currency
Christine Lagarde, the current president of the European Central Bank, said that in order to achieve a faster and cheaper cross-border payment system, the development of a central bank digital currency (CBDC) is necessary.
On January 8, 2020, in an interview for Challenges magazine, Lagarde commented on the serious threats facing the world economy today. Problems such as the great geopolitical uncertainty, the consequent fall in trade and the problems related to climate change are some of the threats we face in 2020 according to Lagarde.
During his tenure at the International Monetary Fund (IMF), Lagarde said that during his presidency at the European Central Bank he would focus on adapting the institutions to the new global financial environment. It is clear that the exploration and development of a CBDC is part of the objective of adapting European institutions to the new global financial context. Lagarde said in the interview with Challenges magazine: "The ECB will continue to assess the costs and benefits of issuing a digital currency from the central bank that would ensure that the general public remains able to use the money from the central bank, even if the use of physical cash finally decreases."