ECB chief: digital euro will not replace cash

The European Central Bank (ECB) is studying the possibility of introducing a digital euro. However, if it is issued, it will be merely an addition, not a replacement for fiat currency, said ECB President Christine Lagarde.

“It [the digital euro] could become an alternative to private digital currencies and ensure that the sovereign currency remains at the heart of the European payments system,” Lagarde added.

She stressed that the regulator should “fully harness the potential benefits of digital technologies.”

The ECB chief also noted that the pandemic has intensified structural changes in the global economy.

In September, Lagarde said that the working group examining the feasibility of developing a digital euro would present the study’s findings in the coming weeks.

For insights into why central banks are issuing their own digital currencies, read ForkLog’s exclusive.

How and why central banks create digital currencies (CBDCs)

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