European Central Bank (ECB) President Christine Lagarde in a recent interview with French businessChallenges magazine stated that the ECB wantsplay a “more active role” in payments innovation. Lagarde acknowledged there is an “urgent need” to introduce more efficient solutions, particularly in cross-border payments.
“We are studying the validity of the application andthe advantages of the central bank’s digital currencies [CBDC], which would allow people to continue to use them, even with reduced use of physical cash. We want to play an active role in this. ”
Lagarde on cryptocurrencies: We are looking into the feasibility and merits of a central bank digital currency that would ensure that people can continue to use central bank money even if the use of physical cash eventually declines. We want to play an active role (5/6)
- European Central Bank (@ecb) January 8, 2020
Lagarde's words indicate that the ECB is currentlytime is actively working to assess the costs and benefits of using CBDC. Also, according to Lagarde, CBDC should not “crowd out” private digital payment solutions.
“We are closely monitoring the feasibility ofWe’re exploring the benefits of CBDC and also considering that they can have serious consequences for the financial sector and the implementation of monetary policy. ”
In December 2019, the ECB published a document inwhich CBDC is seen as a pan-European payment solution, and also created a task force that should assess the prospects for using CBDC in Europe.
Late last year, Lagarde said her bank needed to be at the forefront of developments in the adoption of stablecoins and meeting demand for them.
Also in early December, at a hearing in the European Parliament, Christine Lagarde stated that Europe needs a regional digital currency that would become an alternative to public cryptocurrencies.</p>
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