The pandemic has seen consumers increasingly adopt digital payments and the trend is acceleratingsaid the President of the European Central Bank (ECB), Christine Lagarde.
He explained that too A panel of central bank officials from the euro zone is about to give a verdict on a digital currency from the European Central Bank (CBDC). imminent.
In an online conference organized by the Deutsche Bundesbank on September 10th Lagarde said that EU citizens were in favor of digitization and that e-commerce sales increased by around 20% between February and June, although total retail sales fell by 1.2%. He said the volume of online payments has seen “double-digit growth” since the outbreak began.
“The pandemic has served as a catalyst and accelerated the transition to a new digital normal,” Lagarde said. “The vast majority of consumers expect that they will continue to use digital services as often or even more than they do now.”.
Other institutions have come to the same conclusion as data on the economic impact of COVID. An August report by DBS Bank of Singapore said: “The ongoing pandemic has fueled the movement towards a less money-dependent society.”
Lagarde is helping the ECB develop a CBDC to tackle the move towards digitization, as well as faster and cheaper cross-border payments. In September last year, when she was Head of the International Monetary Fund (IMF), the President of the ECB said she would focus on making the EU institutions adapt to the changing financial environment and open to cryptocurrencies.
“Until now The Eurosystem has not taken a decision on the introduction of a digital euro“Said Lagarde.
“But like many other central banks around the world, we are examining the benefits, risks and operational challenges that come with it.”
According to the President of the ECB The results of a working group examining the potential impact of a CBDC in Europe will be announced “in the coming weeks”..