Christine Lagarde: the hasty launch of the digital euro will break the link of the ECB with other banks

Christine Lagarde: the hasty launch of the digital euro will break the link of the ECB with other banks

The European Central Bank is working on digital currencies, but its launch may be delayed due to systemic risks of stablecoin. This was stated by Christine Lagarde in her first speech as head of the ECB.

In her view, the digital euro will change the way monetary policy is conducted and affect the stability of the global financial system.

A stablecoin can break the central bank’s feedback with banks in the form of incoming reports, depriving the financial department of the ability to forecast and plan.

“The issue of the digital currency of the central bank and its optimal design requires further analysis,” said Christine Lagarde.

The head of the ECB proposed to conduct comprehensive tests of the banking system, introducing blockchain in interbank transfers.

“In the future, this will allow digital euro to be compatible with similar products from other central banks,” she said.

At the same time, Lagarde emphasized that the ECB is already cooperating with central banks and international bodies in this direction, and is also reviewing the system of supervision over stablecoins taking into account the peculiarities of new assets.

Earlier, the Finnish representative in the EU asked the ECB to consider the possibility of issuing its own digital currency.

Christine Lagarde: the hasty launch of the digital euro will break the link of the ECB with other banks