The European Central Bank President, Christine Lagarde, recently gave a strong indication that the ECB could create its cryptocurrency within a few years, in what would be a systematical change to the euro zone’s financial system.
Lagarde hinted that it could take two to four years before the project could begin, as it addresses concerns over privacy, money laundering, and the technology involved.
In a report credited to Bloomberg news, Christine Lagarde was quoted as saying, “My hunch is that it will come. If it’s cheaper, faster, more secure for the users, then we should explore it. If it’s going to contribute to better monetary sovereignty, a better autonomy for the euro area, I think we should explore it.”
What you should know
Nairametrics, some months back, revealed that the European Commission has designed a new Digital Finance framework including Digital Finance and Retail Payments Strategies and legislative proposals on crypto-assets and digital resilience.
What they are saying
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said, “The future of finance is digital. We saw during the lockdown how people were able to get access to financial services, thanks to digital technologies such as online banking and fintech solutions. Technology has much more to offer consumers and businesses and we should embrace the digital transformation proactively, while mitigating any potential risks.”
What this means
The European Commission is paying special attention to developing a regulatory framework that will support the digitization of assets through tokenization and also smart contracts.
It plans to give investors, consumers, traders, choice and opportunities in modern payments and financial services, while at the same time ensuring consumer protection and financial stability.