The European financial regulator is working hard to digitize its own currency - the euro. In September, Christine Lagarde, the President of the ECB, said that the European Central Bank continued to investigate the possibility of introducing the digital euro. "Our role is to secure trust in money. We should be prepared to issue a digital euro, should the need arise," Lagarde pointed out. Currently, the financial authorities consider their further actions on how to launch the digital euro.
The ECB stresses that its attempt to digitalize the national currency is not a blind desire to be in trend. It is a necessity as the digital euro may help to ensure confidence in the European currency and strengthen its position in the digital age. "A digital euro would support Europe’s drive toward continued innovation. It would also contribute to its financial sovereignty and strengthen the international role of the euro," ECB executive board member Fabio Panetta said.
Valdis Dombrovskis, Executive Vice President, supports Lagarde's initiative. "I think we need a digital euro. The ECB and European Commission will jointly review a broad range of policy, legal, and technical questions. That’s why we are announcing that we will create this working group," he pinpointed. Dombrovskis also added that the digital euro could support the digitalization of the EU economy. Moreover, the European Commission considers digitalization to be one of the major elements of the EU's development.
However, the ECB is not a pioneer when it comes to the digitalization of the economy. The first country that launched a national cryptocurrency was Venezuela. In 2018, it issued the oil-backed cryptocurrency El Petro. Additionally, Japan was the first country in the world that legalized the use of bitcoin as a means of payment.