WASHINGTON (Sputnik) – A digital euro is in demand, with the spike in contactless payment amid the coronavirus pandemic, but it will probably take a few years for the cryptocurrency to launch, given the security requirements, European Central Bank President Christine Lagarde said at a virtual event.
The European Central Bankn (ECB) previously said that a digital euro would be an electronic form of central bank money accessible to all citizens and firms – like banknotes but in digital form – to make daily payments in a fast, easy and secure way. It would complement cash, not replace it, according to reports. The Eurosystem would continue to issue cash, regardless.
In an October statement, the ECB said the launch of a global private means of payment could raise regulatory concerns as well as posing risks for financial stability and consumer protection, in a broad take-up of digital currencies issued by foreign central banks.
Lagarde said at Thursday’s event that protecting the privacy of users would be one of the ECB’s main concerns, aside from maintaining sovereign monetary policy channels.
She disagreed with assertions that the ECB was moving too slowly with its digital currency which, according to some, could allow other foreign central banks, like the People’s Bank of China (PBOC), to get ahead in the game.
The PBOC has reportedly finished building out the infrastructure for its Digital Currency Electronic Payment (DCEP) system and has been carrying out local testing in various cities, including Shenzhen and Suzhou. No date has been set for an official launch.
Sourse: sputniknews.com
