Lagarde explained why the digital euro is important for the EU’s payment infrastructure
Kyiv • UNN
The digital euro will help the ECB retain control over the currency and payment infrastructure. It may be approved on January 1, 2027.
European Central Bank President Christine Lagarde revealed the importance of introducing the digital euro. One reason is the ability to retain control over its own currency and the infrastructure through which digital payments are made, UNN reports, citing Reuters.
"There are many reasons why the digital euro is important. First, as we move into a world of digital payments, including those made by the private sector, we believe it is important that central bank money should also have a digital form," Lagarde said.
"Second, it is about sovereignty, as well as... our ability to retain control over our own currency and the infrastructure through which digital payments are made. After all, as we know, payment infrastructure is part of our sovereignty. And whoever does not control their payment infrastructure is potentially vulnerable," the ECB chief concluded.
Context
In July, negotiations began between the European Parliament, the governments of European countries, and the European Commission on the rules for introducing the digital euro.
The aim of these negotiations is to adopt the final law by the end of the year, paving the way for the digital euro to be officially approved by the European Central Bank on January 1, 2027 — exactly 25 years after euro banknotes and coins entered circulation.