Speaking at the French-German Parliamentary Assembly, Christine Lagarde emphasized the importance of digitalization.
ECB President Christine Lagarde said today in the French-German Parliamentary Assembly that if the European Central Bank (ECB) creates a digital euro, it should complement but not replace traditional money.
“We are also exploring the benefits, risks and operational challenges of offering a digital euro,” Lagarde said in his speech, adding “A digital euro can be a complement, not a substitute, of cash. It can provide an alternative to private digital currencies and keep the sovereign currency at the center of European payment systems. ”
Lagarde pointed out that Europe needs to take full advantage of digital technology.
“At the European level, this should be complemented by accelerating the progress towards the Digital Single Market to help ensure economies of scale for digital firms while addressing core concerns about cybersecurity and data protection,” he said.
China Still Ahead
In November, the ECB published a report on the issuance of a central bank digital currency (CBDC), which was later made public for feedback. On September 10, Largarde announced that there would be a consultation on the idea of issuing a digital currency in the coming weeks.
However, China is still far ahead and plans to maintain this lead. It is currently phasing out its digital currency and aims to be the first country to have a fully digital currency.
“China has many advantages and opportunities to export fiat digital currencies, so it should increase the pace of seizing the first road,” said an article in China Finance from the Central Bank of China and published by the People’s Bank of China (PBOC).
But maybe France won’t be far behind.