May 25, 2022

ECB President: the possibility of introducing a digital euro is very high

Head of the European Central Bank Christine Lagarde during an online event held as part of Annual Meetings of the International Monetary Fund and the World Bank said the ECB is "very seriously" considering launching a digital euro.

At the beginning of her speech, Lagarde noted that the pandemic has severely impacted domestic activities, attitudes toward work, shopping, trade and payments.

According to her, in the Eurozone, 50% of work is done from home.

She added that due to the pandemic, e-commerce and digital payments are now dominating the economic and market arena.

Lagarde then highlighted the ECB's commitment to adopting the digital euro, which aims to reduce dependence on cash.

According to Paypers, the EU Central Bank intends to hold public consultations and begin experiments to find out whether it is really worth releasing a digital analogue of the euro.

Other countries are also working on issuing their digital currencies with the support of CBDC central banks.

China is already in the process of testing the digital version of the DCEP yuan, and South Korea intends to begin testing the digital won next year.

The US is also exploring the possibilities of issuing the digital dollar to try to maintain its global financial leadership.