ECB Could Launch Digital Euro before 2027

The European Central Bank may be looking at a 2027 launch for the digital euro according to bank president Lagarde.

Written by: Timothy St. John • Wednesday, June 12, 2024 • 2 min read

The European Central Bank cut rates by 0.25%

President of the European Central Bank (ECB) Christine Lagarde says that a digital euro could launch by 2027.

The European Central Bank could launch digital currency.

That would be just before Lagarde’s term as ECB president is finished, and the implication is that Lagarde will push for the digital national currency before she exits.

The expectation from financial analysts is that the rollout on a digital euro would take longer than that, so Lagarde may be hinting at a quicker approval process than anticipated. Earlier this month, Lagarde said that there would need to be a unified framework set up by the disparate EU bodies for that to happen.

Lagarde said that the European Parliament and the European Commission are both working on the problem to provide a legal structure for the program. This would help the potential digital currency to be released in such a way that it would not conflict with current laws, and then new laws that might be necessary for it to happen could be considered and then put on the books.

What Would a Digital Euro Look Like?

If issued, the digital euro would work alongside physical cash, serving as its counterpart for the digital space. It would need to be efficient and accessible in order to be widely accepted. Like coins and banknotes, the digital currency would require the ECB’s full support.

Lagarde says that the digital euro is necessary if the European Central Bank is to be properly prepared for the future. She sees digital currency as a very integral part of the future of banking services.

There are fears that a digital euro would bring with it additional government oversight as well as digital tracking that invades the privacy of the average citizen. The ECB will have to address these fears if they are to move forward, and once they determine how a digital currency might operate, they can disclose more details to the public that may reassure them.

The reality of a digital currency is that it will not be as anonymous as cash, according to Fabio Pancetta, an ECB board member. How much privacy it will offer will need to be detailed to set at least some fears to rest.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.