ECB’s Lagarde Supports Acceleration of Digital Euro Work
Concerns over crypto’s role in evading sanctions have prompted regulators worldwide to speed up efforts in the sector.
Mar 10, 2022 at 4:48 p.m. UTCUpdated May 11, 2023 at 3:56 p.m. UTC
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European Central Bank President Christine Lagarde says she supports accelerating work on a digital euro.
- Lagarde said the bank's digital euro task force is working hard to move the project forward, and she supports speeding up that process. She spoke during an ECB press conference on Thursday, referring to the ECB's two-year investigation into a digital euro that started in October 2021.
- “I think we have to be a little bit ahead of the curve if we can on that front. So I hope we can accelerate the work. I will certainly support that,” Lagarde said, in response to a question about the role of central bank digital currencies in sanctions against Russian financial institutions.
- The EU and U.S. have implemented heavy sanctions on Russia following its invasion of Ukraine, and concerns over crypto’s role in evading sanctions have prompted regulators around the world to speed up efforts to regulate the industry.
- On Wednesday, U.S. President Joe Biden gave an executive order on crypto encouraging federal agencies to take a unified approach in regulating the sector. He also required the government to assess the risks and benefits of setting up a digital dollar.
- In September ECB adviser Jürgen Schaaf said the bank's experiments and research into a digital euro are no guarantee that one will be launched.
- Lagarde said on Thursday she is confident a digital euro will become a reality, but the decision is ultimately up to the bank's General Council. Lagarde told Bloomberg last year that the digital euro could be rolled out by 2025.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.