Christine Lagarde, head of the European Central Bank (ECB), has said the digital euro will eliminate the risks of loss of financial sovereignty in the eurozone.
According to her:
"The entry of big tech into payments could increase the risk of market domination and dependence on foreign payment technologies with consequences for Europe strategic autonomy."
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
Thierry Breton, European Commissioner for the Internal Market, has said similarly:
"We cannot let anyone other than us Europeans say what will happen in our digital market in terms of payment. We are lacking a pan-European digital solution for payments. If we do not come with solutions, others will."
According to Lagarde, issuing a CBDC could mitigate these risks, support the credibility of the monetary system and promote innovation. The head of the ECB has promised the European Commission will soon present a legislative proposal on this possibility.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
US Treasury Undersecretary Nellie Liang has said that, unlike the EU, Washington will not rush to make a decision on a digital dollar.