We should be equipped with a digital currency that will help us defend our sovereignty – said the president of the European Central Bank (EBC) Christine Lagarde. She emphasized that “digital euros is not to replace cash.”
Lagarde took part in the debate in the European Parliament in Strasbourg devoted to ECB's activities last year.
– Cash will be available. After all, we are working on a new installment of our European banknotes – she pointed out what she referred to the work on the ECB on releasing banknotes with new motives: characters from European culture and natural motifs. This year, the bank will conduct a competition and the winning projects will be selected next year.
EBC head Christine LagardePAP/EPA/Ronald Wittek
“Digital euro is an instrument of our sovereignty”
“The digital euro is a tool of European sovereignty,” Lagarde argued. “Please, let's make a debate on it as soon as possible,” she said to MEPs.
She added that the e-value is necessary for Europe to have a solid payment infrastructure, as well as a tool that will allow cross-border payments.
Lagarde admitted that issues such as financial stability, innovation, and privacy threshold must be subjected to the debate. – All this must be discussed and do not assume that this is something that the European Central Bank will decide from its headquarters in Frankfurt am Main. We are waiting for you. The ball is on your side – she said to MEPs.
– I would not like to see myself next year, in the same place, again arguing that the digital euro is an instrument of our sovereignty. Many things will happen this year. We should not underestimate geopolitical movements, cracks and divisions that we can witness in the future and therefore we should be equipped with a digital currency that will help us defend our sovereignty – emphasized the president of EBC.
ECB and digital euro
The European Central Bank is preparing to issue its own digital currency from November 2023. The digital euro is to be an electronic means of payment available free of charge in all countries euro zones. It would be stored in an electronic portfolio, founded in a bank or a public broker.
According to ECB, there is currently no European digital payment option covering the entire euro area, and 13 out of 20 countries consist of international systems in the case of card payments.
Source of the main photo: PAP/EPA/Ronald Wittek