March 28, 2024

ECB President: "Digital Euro Will Not Replace Cash"

Head of the ECB: “The digital euro will not replace cash”

European Central Bank President Christine Lagarde said the digital euro could be a supplement, not a replacement for cash.

Speaking at an online meeting of the parliamentaryassembly on September 21, she said the ECB is still exploring the possible benefits, risks and mechanisms associated with the launch of a digital currency. Adding that fiat will continue to exist and fulfill its role.

According to Lagarde, the digital euro can become an alternative to private stablecoins, guaranteeing the sovereignty of money in European payment systems.

So far, the European Union is only consideringprospects for the release of its own CBDC, but the results of the discussion should be announced in the coming weeks. However, even in the event of a negative decision on the ECB's digital currency, by 2024 the European Commission will develop a comprehensive governance structure that allows for the integration of crypto assets into the financial sector.

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