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- Lagarde believes that stablecoin has more developments than bitcoin
- The developments in the digital currency sector will be looked after by the newly set up digital currency task force
- The ECB has been keen on launching its very own digital currency
Christine Lagarde, the European Central Bank (ECB) head, disclosed her views regarding the digital currency sector in her first press conference. Lagarde says that she has plans to lead the bank ahead of the curve in terms of crypto and digital currency adoption. Demand for digital currencies has been increasing. It is high time for ECB to respond to it, said Lagarde hinting towards stable coins. Stablecoins are becoming a phenomenon. The total supply of stablecoins surpassed the $100 billion mark a few weeks ago.
ECB Must Respond to Stablecoins Because of Their Increasing Influence in the Market
The press conference was followed by a meeting of several policymakers, where they profoundly discussed digital currency. As the new head of ECB, Lagarde described her plans regarding digital currency and several other monetary policies. She said that all the significant developments they are seeing are more in the stablecoin sector than in bitcoin. In addition, she said that they are only aware of one stablecoin, but they are exploring many others. However, Lagarde did not disclose the stablecoin she was mentioning. Lagarde announced that the developments in the digital currency sector would be looked after by the newly set up digital currency task force.
The Main Priority Would be to Identify the Utilization of Digital Currencies
The team will keenly research the eurozone’s central banks that have invested a lot in studying central bank digital currencies (CBDCs). The main aim of the team would be to decipher the sole purpose of a digital currency. She emphasized that they will also identify the significant technicalities that are not a given, especially when it comes to the Euro system. Moreover, the ECB has been keen on launching its very own digital currency. It will provide its users with direct claims over the central bank.
The European Council and the European Commission, in a recent statement, announced that no stablecoin should be operated in the European Union until the regulators sufficiently monitor the risks. Lagarde also spoke about TIPS (TARGET Instant Payment Settlement) and PEPSI (The Pan European Payment System Initiative), two major digital payment frameworks existing in Europe. Lagarde added that countries like Canada, the U.K. deeply research the best possible use case of digital currencies.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
