Posted 5 months ago | by @devadmin
The president of the European Central Bank, Christine Lagarde, stated that the bank would potentially reach a decision on releasing a digital euro early next year.
In a virtual policy panel held on Nov. 12th, Lagarde stated that the European Central Bank (ECB) was not “racing to be first” to release a central bank digital currency or CBDC. However, Lagarde added that the results of the proposal studies the central bank launched in October on creating a digital euro would be ready by January 2021.
“At that point in time we will make the decision as to whether or not we go forward with the digital euro,” stated Lagarde. “My hunch — but this is a decision that will be taken collectively — is that we might well go in that direction.”
She added, “If it’s cheaper, faster, more secure for the users then we should explore it. If it’s going to contribute to a better monetary sovereignty, a better autonomy for the euro area, I think we should explore it.”
The ECB president further added that the bank still had to address concerns when it comes time to make a final decision on a CBDC. She said that it could take two to four years before the project could be launched as they address concerns over money laundering, privacy, and the technology involved.
Lagarde offered Facebook’s Libra token and China’s digital yuan trials as examples of why the ECB shouldn’t rush a rollout.
“This is a project that will probably take us two, three, four years before it is launched.”
The Federal Reserve Chair Jerome Powell also spoke on the panel along with Bank of England Governor Andrew Bailey. Powell restated his opinion on central bank digital currencies (CBDCs), stating that it was “critical that we get it right as opposed to trying to be the first.” Bailey told the panel that people have the right to “expect certainty of value” in any currency.
A World Economic Forum (WEF) report recently called blockchain technology a foundation of sustainable digital finance which can help create a low-carbon economy. WEF believes that emerging technologies to analyze data, power investment decisions, and grow jobs in sectors support a transition to a low-carbon economy lowering emissions.
The U.K. which used to be apart of the EU, recently said that its Treasury would put forward proposals for regulating “relevant stablecoin initiatives” to ensure they are held to the same standard as rival payment methods, as Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $16,435.91] UP +5.2% in the last 24 hours according to Coingecko at the time of this report.