A few months ago it still sounded as if the arrival of a digital euro was near, but now it appears that it will probably take years. If it continues at all.
Christine Lagarde, president of the European Central Bank (ECB), said in an interview with Bloomberg on March 31 that it could be months before a decision is made on the digital euro, and that it could take another four years before it launches. .
Lagarde, former director of the International Monetary Fund (IMF), says the decision about a so-called central bank digital currency (CBDC) is very complex. At the end of last year, the ECB asked for reactions from the public about the digital euro and has received no fewer than 8,000.
An analysis of these responses will shortly be passed on to the European Parliament and the European Commission. After that, it will be decided whether experiments with the so-called central bank digital currency (CBDC) will be continued or not, and that will only be somewhere in the middle of 2021.
Should Europe choose to continue with this digital euro, the whole process could take another four years, or even longer, before it launches, says Lagarde:
“The whole process, let’s be realistic about it, will take another four years in my opinion, maybe a little more. But I hope we can keep it within four years.
Because it’s both a technical effort and a fundamental change, because we need to make sure we get it right. We owe it to Europeans; they must feel safe. We must ensure that we do not destroy any system, but improve the system. ”