Frankfurt: – Christine Lagarde, President of the European Central Bank, expressed confidence that Europe could start a digital currency in the next four years. Only a few months ago, China announced Digital Yuan. Whereas, countries like the United Kingdom, Sweden, Germany and France also have indicated to start efforts to launch digital currencies. Over the last month, the rates for the world’s leading cryptocurrency, Bitcoin, have scaled record levels. Against this background, the statement of the President of the European Central Bank becomes noteworthy.
Only a few days ago, Forum on Central banking, was organised by the European Central Bank. While speaking at the forum, Lagarde clarified the stand regarding ‘Digital Euro’. Christine Lagarde, President of the European Central Bank, said, ‘We are not running to win the race. Digital Euro will not be an alternative to cash Euro. It will only supplement it. The European Central bank has started preparations for this and the final decision will be taken in the meeting, scheduled to be held at the beginning of the next year. As per my estimate, regarding the time taken for technology and other issues, Digital Euro can be launched in the next two to four years.’
Last year, Facebook created a sensation internationally, announcing the launch of digital currency ‘Libra’. After that, it was also revealed that companies like Amazon and JP Morgan also has initiated efforts to launch their digital currencies. A few months ago, China announced the launching of Digital Yuan. The European country, Sweden also had informed that it was working on the launch of digital currency named E-Krona. The statements of Lagarde indicate that now, Europe also is jumping into the fray, with all the preparation.
The United States, the largest economy of the world, has still not taken any stand regarding the digital currency. Jerome Powell, of the US Federal Reserve, who attended the forum, said that still, the demand for cash transactions is more in the United States.