European Central Bank (ECB) President Christine Lagarde issued a statement on Friday highlighting that the central bank digital currency (CBDC), or digital euro, is a centripetal force for the European Union, and said the ECB aims to introduce it “as soon as possible”.
“Banknotes will continue to be in circulation, but we would also like cash to be in the form of a digital euro,” Lagarde said, adding that the central bank digital currency could be used for online payments within the EU. She continued:
“This is a big project, because the euro is our currency and your currency. The euro unites us. It is a symbol of faith in our common destiny. Therefore, in the next and final stage of preparation, we will embark on a digital euro.”
sauce: european central bank
The ECB Executive Board announced on Thursday that it will move forward with building the technical infrastructure for testing and deploying a retail CBDC, which is expected to start rolling out in 2029, if EU lawmakers pass legislation allowing the issuance of ECBs.
CBDCs are widely seen as antithetical to the core ethos of cryptocurrencies and permissionless decentralized finance (DeFi). Critics argue that CBDCs create digital prisons that could endanger civil liberties, free speech, and human rights.
Related: European Central Bank selects technology partner for digital euro
ECB’s announcement sparks a huge backlash from the crypto community
The ECB's announcement drew heavy criticism from the crypto community and received overwhelmingly negative feedback.
Mert Mumtaz, CEO of remote procedure call (RPC) node provider Helius, wrote to Lagarde and the ECB: “Screw it, witches, we are going to use private funds.”
Political writer David Sander said: “A common currency is a symbol of trust in our common destiny, but the creation of a central bank digital currency undermines that trust by opening the door to real-time monitoring of our payments and spending habits.”
Meanwhile, European lawmakers in France and Germany have proposed legal proposals to ban CBDCs in favor of Bitcoin (BTC), a decentralized, neutral, and limited-supply digital currency.
Eric Ciotti of the French party Coalition of the Right Republic on Wednesday spearheaded a proposal to ban CBDCs in the country.
In October, the German political party Alternative for Germany also submitted a motion calling on the government to consider BTC as a national strategic asset.
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