on the crypto
During an international panel last week, European Central Bank President Christine Lagarde said she has reason to assume that the euro bloc's monetary authority will take steps to launch a digital version of the euro in the next 2-4 years.
The ECB confirms its line on the digital euro
President Christine Lagarde spoke at a virtual conference last week attended by, among others, Bank of England Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell, on the controversial issue of digital currencies issued by governments.
It said there are good reasons to think that the future of the economy will go in that direction, assuming the realization of a digital euro within the next four years.
ECB officials had revealed in previous months that they were conducting research on a central bank digital currency (CBDC), and Bank of Finland President Olli Rehn said in an interview with Reuters a few weeks ago that it is "very likely ”That a digital euro can be inaugurated in the next ten years.
Evaluating the benefits of a digital euro
The president of the ECB highlighted the fact that the development of a digital euro takes a long time, since it is not only a question of implementing a basic technological infrastructure, but also of weaving functional legislation for anti-money laundering control and the prevention of terrorist financing .
It pointed out to conference attendees that China's central bank has been working on a digital version of its yuan for several years. (Currently, China has already started field tests for its digital yuan with Yuan Pay).
Lagarde said that a central bank digital currency should be explored especially to facilitate cross-border payments, reiterating that she does not expect a digital euro to replace paper money. "A digital euro will not replace cash," he said. "It will be a complement."
United States and England
On the US front, Powell reiterated that US financial institutions are evaluating the possible benefits of implementing a digital dollar, although no decision has yet been made on the actual development of a digital dollar.
The Fed is analyzing the implications and possible technical solutions for a digital dollar, although it does not seem likely that a launch will occur in the coming years. The Governor of the Bank of England, for his part, has drawn attention to the fact that there may be privacy concerns due to privately issued stablecoins and CBDCs could be the "answer to that limit". Bailey had spoken out before, saying he wanted to see a global framework for regulating stablecoins.
