The president of the European Central Bank (ECB), Christine Lagarde. said that many European residents are becoming more comfortable with digital payments. Speaking yesterday at the Deutsche Bundesbank online conference, Lagarde revealed that residents are increasingly getting comfortable with contactless payments.
Considering that fiat currency is a way to spread the coronavirus, the use of digital payment has now become a trend among European residents. The president said:
“The coronavirus pandemic has accelerated the trend towards digitalisation. E-commerce, which has grown steadily in recent years increased a fifth in terms of volume of sales between February and June 2020, while in-store sales declined.”
During the conference, which focused on banking and payments in the digital world, Lagarde also added that the volume of e-commerce sales jumped nearly 20%. In addition, online payments between February and June also increased significantly.
According to her, Europe is far from dominating global payments. Hence, the ECB president declared her support for the development of European central bank digital currency (CBDC). In light of this, she revealed that a panel of euro-zero central bank officials will discuss the proposed CBDC.
Even when the pandemic is over, Lagarde believes the trend in the use of digital payments may not reverse.
Similarly, Singapore’s DBS Bank also said that the ongoing pandemic has led to the increasing use of digital payments.
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