European Central Bank President Christine Lagarde wants to meet the growing demand for stablecoins by “going beyond expectations” in the rapidly developing economic environment.
European Central Bank is working on a stablecoin
At her first press conference as President of the European Central Bank (ECB) in Frankfurt, Christine Lagarde made it clear that she would do things her way.
“I will have my own style. Don’t over-interpret, don’t re-evaluate, don’t compare. I will be myself and therefore probably different. “
Lagarde vows to take the ECB to the forefront of blockchain technology on stablecoins. According to the former head of the International Monetary Fund, stablecoins make transactions “as easy as using social media” ”and offer significant benefits to people’s digital lives. As a result, the ECB has set up a task force to help develop its own digital currency.
“By mid-2020, we will identify a possible purpose for this. Are we trying to cut costs? Are we trying to take down the middleman? Are we trying to get free inclusive funding? There are a number of goals that can be pursued. So, I think we’ll start with that, then we’ll identify the technical details of everything. ”
The French politician recognizes that the ECB’s current digital euro payment systems are not necessarily innovative and need to be improved to become more widely accepted. And some of the stablecoins on the market are taking advantage of this opportunity.
“My personal belief is that given the developments that we’re seeing, we’re not so much in the Bitcoin segment but in the stablecoins projects … We’d better be ahead of time … Because there’s a clear demand out there that we have to react. “
Shortly before Lagarde’s speech, the European Council and the Commission issued a joint statement that “no global stablecoin agreement should enter into force in the European Union until the legal, regulatory, and regulatory challenges and risks have been adequately identified and addressed”.
Lagarde’s predecessor Jean-Claude Trichet made a similar statement in November when he criticized Bitcoin for allegedly lacking “features that a currency must have”.