Several countries have begun showing interest in developing a central bank digital currency. The European Central Bank (ECB), not to be left behind, has thrown the idea of establishing a digital euro to the public.
Christine Lagarde, ECB president and former managing director of the International Monetary Fund (IMF), via a Twitter thread, noted that the financial institution was considering developing a euro CBDC. She has furthermore elicited the general public to express their opinion on the issuance of a euro CBDC.
It’s already been one year since I took up my role as President of the @ecb. It has been a difficult year for Europe and the world, but together we have achieved some important milestones that I believe are worth reflecting on. pic.twitter.com/b5mVA7t0xN
— Christine Lagarde (@Lagarde) November 1, 2020
Lagarde, via the tweet, shared a link to a survey asking users to disclose their preferences, such as keeping payments private, having it be in the form of a physical object, the ability to use the euro CBDC without power or the internet, and the potential use of intermediaries in processing payments. Additionally, the ECB president noted that the digital Euro initiative was still being reviewed and is currently still under consideration.
Other developments from the Christine Lagarde tweets
The ECB president, who previously described digital currency as inevitable, also addressed other important issues via her official tweets.
She highlighted the impact of coronavirus on the European economy and how the ECB has tackled the current situation. Notably, the ECB has set in motion actions to lessen the blow from the COVID-19 pandemic. The ECB will be issuing a €1.35 trillion emergency bond-buying program known as PEPP to help reduce the effects of the pandemic.
Additionally, Lagarde emphasized the need to examine how the policies of financial institutions could also help combat climate change and how digital currencies could better suit lifestyle choices, especially for Europeans.
Other CBDC projects
While the European Central Bank (ECB) is still gathering public opinion on issuing a euro CBDC, It is important to note that several other central banks have commenced establishing their own state-controlled digital currency.
China, which has shown the most progress, is on the verge of unveiling its digital yuan, according to recent reports. Bloomberg disclosed that the digital currency passed its recent trial, showing that they are ready for its full launch very soon.
The Bahamas also recently made history by being the first country to actually launch its digital currency, the “Sand Dollar.” Australia’s central bank, amongst several other countries, has also disclosed that it was launching a CBDC soon.
The Bank of Canada’s governor, Tiff Macklem, also recently announced that Canada was considering launching a CBDC. Notably, the governor has previously called on G7 partners to coordinate the establishment of a digital currency.
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