European Central Bank (ECB) President Christine Lagarde has stated that it may take at least two years to fully launch the digital euro due to privacy concerns that need to be addressed. During a meeting with the European Parliament’s economic committee, Lagarde discussed the challenges associated with launching a central bank digital currency (CBDC). She emphasized the need to strike a balance between privacy and transparency before the digital euro can become a reality.
One of the key concerns raised was how user privacy would be ensured if restrictions were imposed on digital euro transactions and storage, making it fully traceable. These restrictions have been proposed to enhance anti-money laundering measures and prevent large holders of the digital euro from disrupting the commercial banking system.
Lagarde reassured that the digital euro should offer privacy to users, even though it will not provide complete anonymity. She emphasized that government-issued stablecoins should be convenient, free, and publicly accessible. Lagarde also noted that the ECB Governing Council will make a decision in October on whether to proceed with the digital euro pilot project.
Digital Euro Launch Delayed as ECB Grapples with Privacy vs. Transparency Dilemma
It’s worth noting that back in April, there was an incident where pranksters conducted a fake interview with Christine Lagarde on behalf of Ukrainian President Volodymyr Zelenskyy, during which Lagarde mentioned that governments would be able to monitor user payments with the digital euro. However, her recent statement suggests a commitment to balancing privacy concerns while moving forward with the CBDC.