As per her Deutsche Bundesbank forum speech last Thursday, the European Central Bank (ECB) president, Christine Lagarde, admits that Europe has indeed fallen behind the race for digital payment supremacy. Lagarde points out the lack of adequate payment integration within the continent as the main issue that held Europe back compared to its foreign competitors.
In early 2020, the ECB appointed a dedicated task force to study the concept of digital euros – specifically, the establishment of a retail CBDC within the territory to replace the traditional wholesale. Lagarde stated that the said research results are approaching and should be released in a few weeks. She adds that the research findings won’t have the final say whether they would push through with the plan or not, clarifying that they would ask the public’s opinion first as they present them with the advantages and drawbacks of retail central bank digital currency (CBDC).
That being said, it is obvious that Lagarde sees incredible things with the digital euro concept. According to her, the establishment of such may place the bloc at the pinnacle of innovation. Economies worldwide are desperately aiming to turn the idea of CBDCs to fruition, and she believes that Europe should do the same. She believes that the latest financial technology can be more widely utilized to make monetary transactions a lot more efficient and accessible.