The ECB will decide whether to proceed with the digital EUR pilots by mid-2021
In a Wednesday interview with Bloomberg Television, ECB president Christine Lagarde believes the bank could release the digital EUR by around 2025.
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The head of the ECB: Digital version of the EUR may appear within the next four years
The ECB launched a public consultation on a potential digital euro in October 2020. Lagarde has come up with a complicated decision-making process in which the bank will define the future of the digital euro. The ECB will soon publish the analysis of the eight thousand responses received from its digital euro consultation process.
“That will be communicated to the European Parliament which is one of the key players as well as the Commission and the Council with which we operate.”
According to her, all discussions and preparations may take around four years, or perhaps slightly longer:
“We need to make sure that we do it right – we owe it to the Europeans. The whole process – let’s be realistic about it – will in my view take another four years, maybe a little more.”
Based on that consultation, along with the work of parliament, the Board of Directors of the ECB will decide if the organization will begin testing of CBDC in mid-2021. After the initial testing phase, the panel will then hold a six-month or one-year review of whether or not to deploy the digital euro.
Lagarde also mentioned that some financial intermediaries have expressed concern about the ECB launching a CBDC. She says these middlemen will continue to exist with the new ecosystem as well as cash, will also continue to be available.
The Central European Bank expects to analyze around 8,000 responses received during recent consultations regarding the potential creation of the digital euro. The analysis will be sent to the parliament of the EU and the bank’s governing council. It will be up to them to decide whether further steps need to be taken in this direction.
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