European Central Bank (ECB) President Christine Lagarde has suggested again at the bank’s preference to launch its long planned Central Bank digital currency (CBDC), the digital euro, to sit with cash.
In a June 30 -speech at the opening clinic of the ECB forum at Central Bank 2025, Law spoke of uncertainty that dominates the current story and impact on the inflation of uncontrollable events, such as customs and supply disorders.
In his speech, the ECB president said that the bank’s strategy assessment has been an exercise in “Evolution, not revolution” and that “even when the world changes around us, we know our purpose. And we will do what is necessary to deliver it – to ensure price stability for Europe’s people.”
While she did not mention specifically Digital eurosThe language was reminiscent of how Lagarde has previously talked about the ECB’s beaten CBDC.
Earlier in June, in An interview With the Xinhua News Agency spoke Lagarde again about uncertainty –Her favorite capture at the moment—But also gave the strongest indication that the ECB hopes to receive the necessary support from the European Parliament for digital euros.
On the question of ECB’s exploration of a digital euro and whether it can cooperate in the future with People’s Bank of China (PBOC) – which launched its own CBDC, the digital Yuanen 2022 – Lagarde said: “Both PBOC (People’s Bank of China) and the ECB are working on a digital currency. China was ahead; it started earlier. We started six years ago, and we get to the point there, if the legislation supports the proposal, we support the proposal, we support the proposal.
She added that the ECB wants to “make sure that we have a European offer that is available, so that throughout the euro area there is a means of payment and a solid currency that can help you buy both online, peer-to-peer, company-to business, and that is the purpose of digital euros.”
Lagarde also explained the reasons behind the ECB’s decision to plow forward with Preparing for a CBDC: “Due to the client’s demand, to put it very easily. Because many Europeans – not all, but many – like to pay electronically, digitally, without cash.”
Laws, however, qualified this by saying that “many Europeans still like cash. I like cash. So we will continue to have cash … But we need, as a superb expression on the financial scene, to be able to respond to the requirements of our customers, Europeans.”
She added that “if they want cash, we should be able to print safe banknotes. If they want digital cash, we should be able to offer a digital euro.”
In other words, there is a general demand for a digital euro. The ECB has developed it for many years, and it is now ready to go. In Lagardes’ opinion, in all interests it is that Launch it. The only missing ingredient is the legislative framework, which the European Parliament must set up.
Waiting for legislation
In the end, the ECB will decide to launch a digital euro, and it seems clear in what way it is leaning in this regard. However, the decision requires approval of a regulation that establishes a legal framework for a digital euro.
In 2023, the EU executive arm, EU executive arm, presented Digital European package To regulate the most important aspects of a digital euro to ensure that the same rules and conditions are applied throughout the euro area when using it. This package were referred to the committee for economic and monetary issues (ECON) in the European Parliament.
On February 9, 2024, a Proposal for report On the package and the ECB’s digital euro investigation phase were presented, but no vote on this draft report has taken place. Therefore, the ECB remains without the necessary legislative framework to start the digital euro, no matter how much it wants.
Insistants with which the lawyers extend the benefits of digital euros, along with the ECB’s repeated claims about its readiness to start it, can be read as a sign of impatience with the European Parliament that draws its feet on regulation.
This was explicitly done on April 8, 2025, when Piero Cipollone, a member of the ECB Board, was presented to the Econ Committee and update About the development of the Digital Euro project and at the same time urged members of the European Parliament (MEPS) to make progress on the legislative file.
Digital Euro’s Development
In 2021, at the height of the Covid-19-Pandemic and the accompanying dramatic decline in physical cash payments, ECB launched one Investigation phase to a euro area CBDC to be used by citizens and companies for retail payments. This lasted for two years, after which the central bank started the digital euro ”Preparation phase“In November 2023.
After positive progress, in November 2024, ECB Required partners To test conditional payments in a CBDC simulation to Start in February 2025. When February rolled around, ECB announced It was expanded the initiative to resolve transactions between institutions with one Wholesale CBDC payment system.
A month later, law confirmed ECB’s commitment to the project and said that the team behind the digital euro was “focused on speeding up the pace”, as well as highlighting how they were campaigns to get other stakeholders, such as the European Parliament and the European Commission, on board.
Lagarde also said that the “test phase” for the digital euro is scheduled to end in October. Thereafter, the ECB will publish a final report and decide to issue a CBD, pending the necessary legislation.
Lately, on May 5, ECB announced that it had established an “innovation platform” with 70 participants to collaborate on testing Digital Euro project. According to the central bank, the platform simulates the planned digital Euro ecosystem, “where the ECB provides technical support and infrastructure for European intermediaries to develop innovative digital payment functions and services at European level.”
This leads us to the current situation in Limbo, with ECB continues tests but apparently already decided and united behind a digital euro, while the necessary regulation – –As is often the case—Play’s catch-up.
Watch: CBDCs are more than just digital money
https://www.youtube.com/watch?v=QVOCRWQB7EW Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard Writing; Encrypted Media; Gyroscope; Image-in-Bild; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>”
