The European Central Bank is racing toward the launch of a digital euro, driven by surging consumer demand and the need to unify Europe’s digital payment landscape.
ECB Close to Digital Euro Launch to Meet Consumer Demand, Maintain Cash and Digital Balance
European Central Bank (ECB) President Christine Lagarde confirmed on June 12 during an interview with Xinhua News Agency that the ECB is close to finalizing preparations for launching a digital euro, pending legislative approval.
“We started six years ago,” Lagarde disclosed in her remarks, elaborating:
We are getting to the point where, if the legislature supports the proposal, we should be ready to launch.
“Why are we doing that? Simply because of client demand, to put it very simply,” the ECB chief noted. She emphasized that the shift toward a central bank digital currency (CBDC) is rooted in changing consumer preferences across the euro area.
Explaining the rationale behind the initiative, Lagarde noted the ECB’s objective to provide both digital and physical forms of money, catering to diverse user needs. “Many Europeans – not all, but many – like to pay electronically, digitally, without cash. Many Europeans still like cash. I like cash. So we will continue to have cash, and we will be issuing new banknotes in a few years’ time,” she revealed.
Lagarde underlined the strategic importance of developing a digital euro that supports a unified payment ecosystem across member states. According to the ECB president, the digital euro is not intended to replace banknotes but to ensure the availability of a sovereign and reliable payment system as electronic transactions become more prevalent across the continent.
She explained:
We want to make sure that we have a European offer that is available, so that within the entire euro area there is a means of payment and a solid currency that can help you transact both online, peer-to-peer, business-to-business, and that’s the purpose of the digital euro.
