European Central Bank Governor Christine Lagarde spoke about the digital euro at the IMF meeting today. Listing the advantages of a possible digital money project to be launched by the ECB, Lagarde also mentioned the disadvantages of this.
Christine Lagarde said at today’s IMF event that the payment habits of consumers in Europe have started to change and the payment system will change as a result. Lagarde gave the message that this could result in a digital euro project to be developed by the European Central Bank.
Cheaper, faster, safer
Stating that the use of cash in European countries has decreased, Lagarde explained that people now want to switch to cheaper, faster and safer payment methods. The President of the European Central Bank thinks that the digital euro can meet these expectations.
Lagarde said that the European Central Bank started to get the opinion of the public on the digital euro, considering all these advantages.
It cannot be allowed to destroy the existing system
Christine Lagarde also said that a possible digital euro project could adversely affect the current financial system. Although the digital euro promises to make transactions in a cheaper and faster way, leaving the today’s payment system and switching to the digital euro infrastructure is a “costly and time consuming process”.
Lagarde also reminded that it is not clear how the digital euro will affect brokerage houses (such as banks) in Europe. Stating that they have not yet reached a final decision on the digital euro, Lagarde underlined that the digital central bank money cannot be allowed to destroy the current financial order.