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ECB President; Digital Euro Should Complement, not Replace Cash

When the European Central Bank (ECB) creates a digital euro, it can only complement but not replace the traditional cash, the ECB President Christine Lagarde said at the Franco-German Parliamentary Assembly recently.

“We are also exploring the benefits, risks and operational challenges of introducing a digital euro,” Lagarde said, in her speech, elaborating, A digital euro could be a complement to, not a substitute for, cash. It could provide an alternative to private digital currencies and ensure that sovereign money remains at the core of European payment systems.” Lagarde notes that Europe needs to get the benefits of digital technology.

“At European level, this should be complemented by accelerating progress towards the Digital Single Market to help deliver economies of scale for digital firms, while addressing key concerns around cybersecurity and data protection,” she said.

In November, the ECB has published a report about issuing a central bank digital currency (CBDC), and then later presented to the public for feedback. On September 10, Largarde has announced that there will be a consultation on the idea of issuing a digital currency in the next coming weeks.

On September 15, Societe Generale Forge has announced that Tezos will be used for French CBDC trials.

On the other hand, China is still much ahead and plans to continue the lead. It is already rolling out the digital currency in stages and is aiming to be the first country to have digital money.

“China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track,” said an explanation from China’s central bank, in an article in China Finance, which is organized by the People’s Bank of China (PBOC).

But imaginably France won’t be far behind.

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