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Christine Lagarde of the ECB believes that a European CBDC wouldn’t be suitable enough for Fiat

 
Christine Lagarde of the ECB believes that a European CBDC wouldn’t be suitable enough for Fiat
Breaking News / Crypto Market

Quick Take

1 minute read

  • Christine Lagarde has recently said that cryptocurrency released in the European Union probably won’t be fully able to replace Fiat currency.
  • Speaking earlier this week in an online meeting, the President of the ECB said that the bank was looking into the benefits as well as the risks of a CBDC for the European Central bank. 

Christine Lagarde, the President of the European Central bank has recently said that cryptocurrency released in the European Union probably won’t be fully able to replace Fiat currency.

Speaking earlier this week in an online meeting of the Franco-German Parliamentary Assembly on the 21st of September, the President of the ECB said that the bank was looking into the benefits as well as the risks of a CBDC for the European Central bank. Even if one was to be created, Fiat currency would more than likely be playing a big hole in its future.

She went on to say:

“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.”

Earlier this month on the 10th of September though, the president said that the Eurosystem had not yet reached a final decision in regards to bringing in a digital euro. However, she did highlight that a task force would be implemented to look into and research the potential benefits and operations of a CBDC launched in Europe.

However, with everything going on in the current pandemic of coronavirus and the economic turmoil coming on the backlash of it, recovery would be uneven and incomplete according to the ECB president. Maybe a CBDC isn’t at the forefront of Europe’s worries right now…

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

 

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