The European Central Bank (ECB) will take a decision on the launch of a digital euro in January 2021.

If a positive decision emerges then it will take 2 to 4 years to implement such a project according to Christine Lagarde.

A digital euro before 2024?

The subject of a digital euro was discussed at the European Central Banks Forum on 12th November.

The opportunity for Christine Lagarde, President of the European Central Bank (ECB), to present her opinion on the subject. According to her, therefore, a digital euro is possible, but the subject must be the subject of a consensus among the member countries. The aim would be to meet the needs of Europeans; the President of the ECB has also highlighted the decline in the use of cash in some countries such as Sweden and the Netherlands.

According to Christine Lagarde, the digital euro must therefore be considered only if it is cheaper, faster and safer for Europeans: "If the digital euro is to contribute to better monetary sovereignty, to better autonomy of the euro zone, I think we should consider that. If this is to facilitate cross-border payments then we should look into the matter."

The ECB launched a consultation in October that will end in mid-January. It is at this point that the institution will decide whether or not it is necessary to move forward with the launch of a digital euro.

Do not rush for all that

Christine Lagarde said the ECB still needs to address several issues, including anti-money laundering and anti-terrorist financing measures, in addition to protecting users' privacy. The ECB president cited Facebook's Libra and the recent trials of digital yuan in China as examples to study.

According to her, however, there is no question of rushing: "We are not racing to be the first. And we believe that a digital euro will not replace cash. It will be a complement to species." Many questions remain unanswered, but it is now clear that the ECB is really studying the launch of a digital euro in four to five years.