European Central Bank Announces Digital Euro Readiness, Awaits Legislative Action
The European Central Bank (ECB) has announced that the digital euro is technically ready for launch, pending legislative action from the European Parliament and Commission. According to ECB President Christine Lagarde, the bank has completed its preparations, and it is now up to the European Council and Parliament to examine the Commission’s proposal and transform it into a legal act.
At the ECB’s final press conference of the year, Lagarde stated, “We did our job, we carried the water. But now it is up to the European Council and certainly later the European Parliament to examine whether the Commission proposal is satisfactory and how it can be transformed into a legal act or amended.” The digital euro is expected to be introduced around mid-2029, as previously stated by ECB Executive Board member Piero Cipollone.
MiCA-Compliant Stablecoins Considered Safe
During the press conference, Lagarde also addressed the topic of stablecoins, stating that those compliant with the European Markets in Crypto-Assets Regulation (MiCA) are considered safe. “We are lucky in Europe to have something called MiCAR,” she said. “It is the legal framework within which instruments such as stablecoins can operate and be monitored and considered secure.” Lagarde also noted that regulated stablecoins can serve as an alternative form of payment, but emphasized the need for vigilance regarding potential risks associated with multi-issuance currency.
Digital Euro to Coexist with Fiat Money
The ECB President emphasized that the digital euro is not intended to replace fiat money, but rather to complement it. “We want to ensure that in the digital age, there is a currency that is the stability anchor for the financial system,” Lagarde stated. She also highlighted the importance of ensuring that the digital euro is user-friendly, cost-effective, fast, efficient, private, and can work online and offline. Additionally, Lagarde discussed the ECB’s commitment to maintaining the availability of euro cash and using a data-driven approach to inform interest rate decisions.
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