EU could move step closer to digital euro this October, Lagarde says

The Block
The Block

28 Jun 2023 4:01 PM

The European Central Bank will make a determination on moving forward with a digital euro in October, though President Christine Lagarde cautioned that the central bank is still in the experimental phase....

  • The European Central Bank (ECB) plans to make a decision on the creation of a digital euro by the end of October.
  • However, widespread adoption of a digital euro is not expected in the near-term.
  • The ECB president emphasizes the importance of preserving the value of the euro and maintaining currency sovereignty.
  • The EU has adopted a legislative framework for digital assets, but the rulemaking process is still in its early stages.
  • The Libra/Diem stablecoin project by Facebook has influenced the EU's approach to digital assets.
  • The Federal Reserve and the Bank of England have also explored the possibility of central bank-issued digital currencies.
  • The Fed believes a decision on a digital dollar is years away, citing concerns about privacy and financial sector risks.
  • The Bank of England sees potential for wholesale digital money to revolutionize financial infrastructure and trade finance.
  • The New York Fed has experimented with wholesale payments using digital currencies on private blockchains.
  • The Fed plans to launch a real-time payments network using traditional payment rails in July.

The sentiment of the article is mostly neutral, with a focus on providing information about the plans and considerations of various central banks regarding digital currencies.

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