On an online meeting this last September 21st, Christine Lagarde, the Europe Central Bank (ECB) president, said that the digital euro or any digital currency released in the EU will not replace fiat, but instead aim to complement it. Lagarde exclaimed that despite the intensive effort to study the risks and benefits of a European CBDC, she expects fiat currency to keep its vital role in finance moving forward.
Lagarde has been in support of the development of a European CBDC seemingly from day one. She has made it a point to emphasize several studies and experiments executed towards the project’s fruition. This is further evidenced by her decision to focus on aiding Europe-based institutions. On her tenure as the head of the International Monetary Fund (IMF), she ensured that these institutions adapt to the ever-changing financial space driven by the continual rise of crypto adoption.
The ECB president notes that Europe needs to acquire every little digital technology benefit it can muster to help its economy. She also mentioned that China is still ahead of the global CBDC race. She stated that the country is taking several opportunities and advantages in developing digital currencies; thus, its colossal lead. That being said, Lagarde notes that France isn’t that far behind, and might even surprise everyone.