ECB chief: launch of digital euro possible within the next four years

The ECB President Christine Lagarde said the regulator will not rush to launch its own digital currency (CBDC). If a decision is taken, it could take two to four years.

Speaking at an online conference with Fed Chair Jerome Powell and Bank of England Governor Andrew Bailey, the head of the European regulator said Europe could well begin moving toward launching the digital euro.

However the ECB still has to answer a number of questions, including anti-money-laundering concerns and user privacy.

“If the solution is cheaper, faster and safer for users, we should study it. If it would contribute to monetary sovereignty, greater autonomy for the euro area, we should study it. If it would simplify cross-border payments, we should study it,” said the head of the regulator.

According to her, developing CBDC will take a long time. As an example, Lagarde cited the People’s Bank of China, which has been working on the digital yuan for several years.

In early November, the ECB chief announced a survey on the digital euro for EU citizens. Earlier Lagarde stated that the asset would be a complement to cash, not a replacement.

Earlier in October, a working group of experts from the ECB and 19 national central banks identified possible scenarios that would require the issuance of a digital euro.

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