European Central Bank (ECB) president Christine Lagarde revealed that the bank will consider launching a central bank digital currency (CBDC).
Clearly the ECB, they will release the analysis conducted after more than 8,000 responses in the public consultation process on the issue.
The decision on whether to proceed with CBDC’s publishing plans or not will be known for a few more months. However, this announcement does not mean that the physical euro currency will continue to be discontinued. Instead it will continue to be used as the primary currency until the decision is completely decided.
The ECB president explained that the effort would not demolish any system but would instead improve the standard of the system used.
Lagarde also stressed that there is a possibility if the launch of CBDC will take place in another four years.
"Overall, the process from my point of view will either take four years or more."
The analysis received will be submitted to the European parliament and will be re -submitted to the ECB governing council, which is likely to take a year. Because of that Lagarde assured the CBDC would probably actually happen four years later.
The Sand Dollar, the central bank’s digital currency issued by the Bahamas has been the president’s focus at the moment. What causes the currency to steal attention is because of its centralized feature and can be stored in an e-wallet certified by the central bank, and has the potential to be used offline.
