Lagarde says the European Central Bank is preparing to launch a digital EUR
BIBIBI
AT A GLANCE
Lagarde said that the European Central Bank is designing a digital EUR for everyday payments and expects inflation driven by energy costs to ease next year.
Article
【Lagarde:EUR The euro area economy is resilient, and the European Central Bank is preparing to launch a digital EUR】
European Central Bank President Lagarde said that the September EUR euro area 3.8%inflation rate mainly reflects high energy costs, and the European Central Bank expects this to ease next year. She noted that the energy shock is expected to keep EUR euro area inflation above the central bank’s target in the first half of 2027 year, but that a prudent policy response remains appropriate at present. She made the remarks on Saturday during the annual meeting of the International Monetary Fund. Lagarde also said that the European Central Bank is designing a digital EUR She said that, in the retail payments sector, the European Central Bank is preparing to supplement cash in digital form by launching a digital EUR for everyday payments. The digital EUR will further stimulate innovation and competition in the retail payments sector, ensure the continued coexistence of public and private solutions, and support Europe’s strategic autonomy in payments. Cointelegraph previously reported on September 21 that the European Central Bank had launched the Pontes system, allowing financial institutions to settle wholesale tokenized-asset transactions in central bank money and providing an alternative to private settlement assets such as stablecoins. The system initially offers a set of core services and is expected to be fully implemented by 2028 year.
Key points
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European Central Bank President Lagarde said that the September EUR euro area inflation rate was 3.8%, mainly reflecting high energy costs.
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Lagarde said that the European Central Bank expects the related inflationary pressures to ease next year.
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Lagarde noted that the energy shock is expected to keep EUR euro area inflation above the central bank’s target in the first half of 2027 year.
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Lagarde said that a prudent policy response remains appropriate at present.
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The remarks were made on Saturday during the annual meeting of the International Monetary Fund.
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Lagarde said that the European Central Bank is designing a digital EUR, and is preparing to supplement cash in digital form for everyday payments.
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Lagarde said that the digital EUR will stimulate innovation and competition in the retail payments sector, ensure the continued coexistence of public and private solutions, and support Europe’s strategic autonomy in payments.
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The article cited a Cointelegraph report dated September 21 stating that the European Central Bank had launched the Pontes system, allowing financial institutions to settle wholesale tokenized-asset transactions in central bank money.
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The article said that the Pontes system initially offers a set of core services and is expected to be fully implemented by 2028 year.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This news contains two parts: first, Lagarde believes that current EUR euro area inflation is mainly affected by energy costs and is expected to ease subsequently; second, the European Central Bank is designing a digital EUR with the aim of using it as a digital supplement to cash for everyday retail payments. The digital EUR is currently still in the design and preparation stage; the article does not say that it has been officially launched.
Why it matters to readers
Digital EUR If introduced for everyday payments as envisioned in the article, it could affect innovation and competition in Europe’s retail payments sector, as well as the coexistence of public and private payment solutions; the inflation assessment concerns the policy response adopted by the European Central Bank.
Beginners should distinguish between “designing a digital EUR” and “officially going live.” They should also monitor the European Central Bank’s subsequent announcements on the launch arrangements, as well as whether energy costs and inflation ease as expected.
Risks and unknowns
The material comes from a Telegram channel’s retelling and does not include the original records of statements by the European Central Bank, the International Monetary Fund, or Lagarde.
The article does not provide the time, scope, or specific implementation plan for the digital EUR’s official launch.
“September”, “next year,” “Saturday,” and “September 21” lack explicit years, and some time-related information cannot be independently verified.
Related Developments
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The content concerning the Pontes system is a further retelling of an earlier Cointelegraph report; the material does not provide the original announcement.
Whether the Pontes system can be fully implemented as expected in 2028 has not yet been confirmed by subsequent results.
Related concepts
digital EUR
This term is not in the glossary yet. Browse related concepts in the glossary.