At a press conference in Frankfurt, the President of the European Central Bank (ECB), Christine Lagarde, spoke about the plans of the bank’s task force to deal with digital currencies.
ECB’s Digital Currency Task Force
ECB President Christine Lagarde said at a press conference in Frankfurt that the digital currency of the central bank is slowly taking shape. She also called for regulatory support for digital currencies to take place during her tenure as head of the International Monetary Fund. It also believes that the ECB should be ahead of the game with new technologies.
She explained that while monetary policy’s mandate is price stability, it is now time to rethink how it can be achieved.
“I think it is time for this new task and it is the right time to get the support of members around the table, the effectiveness and appropriateness of every single instrument that we have used in the past, to check – an assessment of it should be made. And then we should redefine for ourselves what exactly this medium-term goal should be that fulfills the mandate that we have and that does not change. The mandate is price stability. The way we are fulfilling the mandate will be subject to strategic review. ”
“With regard to the digital currency, I would particularly like to pay tribute to someone who left the year-end and who played a key role in the ECB, and who also helped us to understand better and more clearly the difference between Bitcoin, stablecoins and digital currencies , By that I mean Benoît Cœuré, who was a member of the Governing Council and a member of the Executive Board of the ECB and who will be leaving at the end of the year. ”
Lagarde discussed the importance of drawing the line between different types of assets and focusing the bank’s efforts.
“The digital currency – we have set up a task force and we will accelerate the efforts of that task force by using the resources of the entire Eurosystem, i.e. to the national central banks that are already participating in this research and have already agreed to participate in the experiments, and some pilots. All the experiments that have already taken place and all the research into which efforts have already been put are combined with the work that has also been done here. I think we will try to get this done by mid 2020. We will identify number 1 what we want to achieve with it. Are we trying to cut costs? Are we trying to take down the middleman? Are we trying to get inclusive finance at no cost? There are a number of goals that can be pursued. “
“I think we’ll start with that. Then we will find out the technical details that cannot be taken for granted, especially when talking about the Eurosystem. And I think there is also great interest outside of our regional area. For example, I know that Canada, Great Britain and certainly other countries are also thinking very carefully about whether it makes sense, what purpose it should serve and how we can best implement it. ”