According to Christine Lagarde, president of the European Central Bank (ECB), a decision about issuing a digital Euro might be made as early as January 2021.
However, she stressed that the ECB is not “racing to be first” in the quest to launch a central bank digital currency, perhaps because it already looks like China will win that race. However, it is important to note that where once there may have been resistance to a digital equivalent of a fiat currency, more countries are accepting the idea.
Lagarde hinted that the ECB is leaning toward pushing ahead with a central bank digital currency, and said: “My hunch — although this is a decision that will be taken collectively — is that we might well go in that direction.”
Lagarde also revealed that it would probably take “two, three, four years” for a digital euro to actually be in general use, but at least the process of developing it is likely to make a start.
However, Cointelegraph reported this week that a Deutsche Bank report warned that this non-urgent approach to CBDCs might not be good enough.
Germany’s largest banking institution said it is confident that CBDCs will replace cash in the future and said the USA and Europe may could suffer the consequences of leaving it too late to catch up with other CBDCs. The report said: “They may find that their companies are forced to adopt the digital currencies and policies of other countries as payment mediums,” Deutsche Bank wrote.