The president of the European Central Bank (ECB), Christine Lagarde, supports the bank'southward active involvement in the evolution of a primal banking company digital currency (CBDC) to address the need for faster and cheaper cross-border payments.

In an interview with French business organization magazine Challenges published on Jan. eight, Lagarde discussed the most probable threats to the global economy in 2022, among which she named a downturn in merchandise and a range of uncertainties, geopolitical risks and climate change. Going further, Lagarde noted that "the EU is notwithstanding the about powerful economical and trading surface area in the earth, with enormous potential."

Not to deed as observers of a irresolute globe

When asked almost ECB's dedication to the exploration and development of a CBDC, Lagarde emphasized the urgent demand for fast and low-cost payments, the field where she sees the taking a leading position, rather than remaining observers of a irresolute world. Equally such, Lagarde said:

"ECB will go on to assess the costs and benefits of issuing a central bank digital currency that would ensure that the full general public remains able to use central bank money fifty-fifty if the use of concrete cash eventually declines."

Lagarde recalled that the bank continues examining the feasibility and merits of a CBDC every bit such means of payment could exert influence on the financial sector and manual of monetary policy. She stipulated that the ECB formed an expert chore force fix to piece of work closely with national fundamental banks to examine the feasibility of a euro area CBDC.

When asked near current initiatives to launch a CBDC at the ECB, a representative told Cointelegraph in somewhat vague terms that:

"We are working on all aspects of CBDC, with in-depth analysis of costs and benefits of such a new grade of central banking company money. It will accept a while earlier we will communicate on our conclusions."

Crypto-friendly approach

Lagarde has previously demonstrated a friendly opinion towards digital currencies, having said in December last year that ECB should be ahead of the curve regarding the need for stablecoins.

Final September, when Lagarde was still the caput of the International Budgetary Fund (IMF) and nominee to be the next president of the ECB, she claimed that she would focus on making sure that institutions promptly adapt to the rapidly changing financial environment.

In the concurrently, ECB remains open to the idea of a digital euro equivalent only would desire to terminate citizens holding too much of it.

UPDATE Jan. 9 nineteen:00 UTC: This article has been updated to include commentary from a representative of the ECB that nosotros received after initial publication.