ECB Chief To Expedite Taskforce With Clear Objectives On Digital Currency

Euro Symbol outside ECB (MPD01605_Flikr)

The European Central Bank (ECB’s) new chief, Christine Lagarde has divulged her intentions to expedite the bank’s taskforce efforts on a digital currency project.

At a news conference in Frankfurt following her first address, Lagarde hinted after leaving key rates unchanged in the monetary policy meeting, that “central bank digital currency is coming alive” and reaffirmed the support for the regulatory framework on digital currencies during her tenure as head of the International Monetary Fund.

In that context, she reckons ECB should be “ahead of the curve” on crypto-assets while using advanced technologies to improvise conventional banking systems and procedures.

European Central Bank (ECB) has divulged in the recent past as well that it intends to accelerate its plans for a central bank digital currency (CBDC) upon consumers’ discomfort in cash transactions. In addition, the European Union (EU) appears to be constructive on blockchain adoption in their financial system. Accordingly, ECB’s (European Central Bank) idea of developing a new centralized cryptocurrency is in place.

Benoit Coeure, who is an executive board member of the European central banker, revealed the plans of central bank’s digital currency as the real apprehension that he foresees with the current financial systems is their lack of cross-border payment action.

ECB President Christine Lagarde for now, has used the first ECB press conference to explain as to how the new consideration of the ECB monetary policy’s side effects would be reflected in future monetary policy decisions and the cryptocurrency plans.

She urged to know the essence of digital currency, like, is it going to be cost effective? Or are we trying to have inclusive finance at no cost? Elimination of the middleman?

Hence, it is evident that she insisted for the clear objectives for a digital currency before developing a digital euro, in order to achieve with the taskforce the ECB should establish its priorities and finalize what exactly it is in need of.

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