The European Union Could See A Digital Euro in 4 Years, or More: ECB President Christine Lagarde
The European Central Bank (ECB) could launch its planned digital Euro in the next four years, ECB President Christine Lagarde stated in an interview with Bloomberg on Wednesday. She believes the digital token research and development needs to take time to constitute a “fundamental change” across Europe’s economy.
Additionally, to launch by 2025, Lagarde said her fellow regulators must approve the digital currency project by Q4 this year.
“We need to make sure that we do it right – we owe it to the Europeans,” Lagarde said in the interview.
“The whole process – let’s be realistic about it — will, in my view, take another four years, maybe a little more.”
Despite being highly critical of Bitcoin and other cryptocurrencies, Lagarde has been less critical of a central bank's digital currency's possibilities. In November last year, she stated that is the CBDC can “contribute to better monetary sovereignty, a better autonomy for the euro area, I think we should explore it.”
Lagarde further stated the importance of taking the process slow to ensure every technical aspect is considered, given the fundamental changes that will occur once launched.
“We need to make sure that we’re not going to break any system, but to enhance the system.”
So far, the ECB has completed its online consultation on a potential CBDC, receiving over 8,000 responses, which are set to be made public in the coming days. Responses will be sent to the European Parliament and the European Governing Council, who will decide on the launch of a CBDC.