Central Bank of Europe: Cryptoeuro will not replace traditional currency

The new financial instrument can only claim a secondary role.

The cryptoeuro will not replace traditional fiat in Europe. Any other cryptocurrency issued in the EU also cannot take the place of the current currency. This was stated by Christine Lagarde who takes the position of the President of the ECB (European Central Bank), during an online conference of the Franco-German Parliamentary Assembly.

According to her, at the moment, regulators continue to study the risks, benefits, and possible operational problems of the national cryptocurrency (CBDC). At the same time, the banker drew attention to the fact that the European Union is not considering a complete rejection of the current fiat. Christine Lagarde believes that traditional money will play a big role in the future of digital assets.

“The digital version of the euro can be an addition, but not a complete replacement for traditional money”

The head of the ECB

At the same time, Christine Lagarde drew attention to the fact that cryptoeuro can be considered as an alternative to private digital assets. For example – Libra from Facebook. The new financial instrument, in her opinion, will help preserve the role of the national currency in payment systems operating in Europe.

Recall that in early September, Christine Lagarde said that the tests of the euro cryptoversion are coming to an end. Based on the results obtained, the ECB experts intend to answer the question of whether Europe needs a new financial instrument. According to her, the decision will be presented within a few weeks.

While the European Union is thinking about whether they need a national cryptocurrency, the regulators of the Bahamas announced the imminent launch of a digital version of Fiat – the “sand dollar”. The start is scheduled for October 2020. If the plan is implemented, the Bahamas will overtake China in issuing a national cryptocurrency. Recall, according to one of the versions, the crypto-yuan may appear only by 2022.

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