The European Central Bank (ECB) is studying the advisability of launching its own digital currency in a context where virtual payments are becoming more and more important, its president Christine Lagarde said on Thursday evening.
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“The Eurosystem has not yet taken a decision on the introduction of a digital euro. But, like many other central banks in the world, we are studying the advantages, risks and operational challenges of such a decision, ”
she said at a conference of the German central bank, the Bundesbank, devoted to payment methods in a digital world.
Christine Lagarde specified that a working group would make its conclusions in the coming weeks on the issue, a step which will be followed by a public consultation.
Europe is lagging behind
"We have a duty to play an active role in balancing the risks and benefits of innovation in payments, so that money continues to serve Europeans well,"
said the former boss of the International Monetary Fund, then that the Covid-19 pandemic has accelerated the shift towards digital payments.
However,
“Europe has fallen behind in this competition.
The lack of payment integration in Europe means that foreign providers have taken the lead, ”
which is not without risks, she added.
Among these risks, she cited among others the possibility of breakdowns among payment card providers such as the one that affected millions of Europeans in the summer of 2018;
or the possible abuse of a dominant position on the part of certain private groups, or the increased difficulty of the fight against illicit activities.
In the event of the introduction of a digital euro, it will be necessary to ensure the maintenance of access to the currency of the Central Bank, warned Christine Lagarde.
"A digital euro, in any case, would be a complement and not a substitute for cash"
, she stressed, adding that the ECB should also ensure to contain the risks concerning the role of the banking sector in the financing of the economy.