On Sunday’s Twitter thread, Christine Lagarde, former IMF managing director and current president of the European Central Bank, invited people to comment publicly on the potential digital currency of the Euro Area Central Bank (CBDC).
It’s already been one year since I took up my role as President of the @ecb. It has been a difficult year for Europe and the world, but together we have achieved some important milestones that I believe are worth reflecting on. pic.twitter.com/b5mVA7t0xN
– Christine Lagarde (@Lagarde) November 1, 2020
“We are still at the stage of review and reflection, but we have just launched a public consultation so that consumers and Europeans can actually express their preferences and tell us if they would be satisfied with using the digital euro currency only the way they use the euro coin or the euro banknote,” knowing that central bank money is available and that they can rely on it “
Lagarde says in the video posted on Twitter
The statement on CBDC was part of a larger reflection on 2020, which Lagarde said was a “difficult year”
Topics on the agenda included the impact of the coronavirus and the ECB’s response to the pandemic, the importance of exploring how banking policies could counter climate change, and how cryptocurrencies could better become a ‘European lifestyle’ ..
“As Europeans are increasingly turning to the digital way to spend, save and invest, we should be prepared to spend a digital euro if needed”
CBDC in the world
As previously reported, the ECB in 2021 wants to more seriously examine the digital currency of the central bank. Most central banks around the world have already taken preliminary, albeit cautious, steps to issue CBDCs.
Interestingly, Changpeng Zhao, the enigmatic head of the Binance exchange, believes that a sufficiently well-designed digital currency of a central bank could become a threat to Bitcoin. CZ said very few CBDCs will have the same freedom as Bitcoin and they will be highly centralized and controlled. However, in the long run, he warned:
“If there is a government pushing another cryptocurrency that is even more open, more free, has fewer restrictions than Bitcoin, and is faster and cheaper to use, then Bitcoin would be at risk. But it’s good for the industry, it’s just something better than Bitcoin, and it would replace it. “