Urgent Need for Digital Euro

European Central Bank (ECB) President Christine Lagarde emphasized the critical importance of accelerating the development of a digital euro at both wholesale and retail levels. Speaking before the European Parliament's Committee on Economic and Monetary Affairs, Lagarde highlighted the necessity to reduce Europe's vulnerability in the rapidly evolving digital finance landscape.

Legislative Framework and Global Changes

Lagarde urged for "priority attention" towards establishing a legislative framework to expedite the digital euro. She pointed out significant global shifts, including the United States' focus on stablecoin regulation and the growing influence of cryptocurrencies. These developments, Lagarde noted, are making their way into reserve accounts, underscoring the urgency for Europe to act.

Reducing Dependency on Non-European Solutions

"To reduce our potential vulnerability, it's imperative to have both wholesale and retail payment infrastructures in place. This ensures we're not reliant on non-European solutions, which could compromise our financial sovereignty," Lagarde stated, highlighting the strategic importance of the digital euro for Europe's future.