ECB Head Pushes CBDC, Calls it a Unifying Force in Europe

European Central Bank (ECB) president Christine Lagarde released a statement on Friday touting the digital euro, a central bank digital currency (CBDC), as a unifying force in the European Union (EU) and said the ECB is aiming to launch it “as early as possible.”

“As much as banknotes will continue to circulate, we want cash to be in the form of a digital euro as well,” Lagarde said, adding that the central bank digital currency could be used for online payments in the EU. She continued:

“This is a big project because the euro is our currency, your currency. It brings us together. It’s a symbol of trust in our common destiny, so off we go with the digital euro in the next and final phase of preparation.”

The ECB governing council announced on Thursday that it will move ahead with building the technical infrastructure to test and deploy a retail CBDC, slated to begin rolling out in 2029, if EU lawmakers pass legislation allowing the ECB to issue it.

CBDCs are widely seen as antithetical to cryptocurrency and the core ethos of permissionless, decentralized finance (DeFi). Critics argue that CBDCs create a digital prison that can endanger civil liberties, freedom of speech, and human rights.

Related: European Central Bank picks tech partners for digital euro

ECB announcement draws heavy backlash from the crypto community

The ECB announcement drew heavy criticism from the crypto community and received overwhelmingly negative feedback.

“Begone, witch, we’re gonna use private money,” Mert Mumtaz, the CEO of remote procedure call (RPC) node provider Helius, wrote in response to Lagarde and the ECB.