The European Central Bank (ECB) is working on providing a digital alternative to the euro. According to the ECB president, Christine Lagarde, there is a need to protect the central bank’s sovereignty by offering the digital euro, as digital payments become a global trend.
Speaking at the Franco-German Parliamentary Assembly on the 21st of September, Lagarde said:
“A digital euro could be a complement to, not a substitute for, cash; it could provide an alternative to provide an alternative to private digital currencies and ensure that sovereign money remains at the core of European Payment systems.”
This is not the first time the ECB president would express similar views on the digital euro. Earlier this month, Lagarde said the coronavirus pandemic had accelerated the trend towards digital payments. She revealed this at the Deutsche Bundesbank online conference, declaring her support for developing European central bank digital currency (CBDC).
In addition, the Crypto-Assets Task Force, under the ECB, published a report on the implication of widespread use of stablecoins. The report said that the terminology “stablecoin” is misleading and confusing.
Also, the report addressed potential threats that are arising from the wide adoption of various stablecoins. While speaking at the Franco-German Parliamentary Assembly, Lagarde said the digital coin, when launched, will compete with stablecoins.
Since the beginning of 2020, the total supply of existing stablecoins has tripled to over $18.5 billion.
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