During yesterday’s European parliament questioning to the European Central Bank Chief Christine Lagarde, the topic that stood out was the digital Euro. Both the members of the European Parliament and the ECB Chief agree that the digital Euro will strengthen Europe’s sovereignty and decrease dependence on US companies that currently dominate private money-rails.
MEP Nikos Papandreou highlighted how judges of the International Criminal Court, who were sanctioned by the US, could not use credit cards due to the sanctions. The digital Euro would provide an alternative to these unusual situations.
The ECB President gave a speech highlighting the increasing global role of the Euro, with MEPs present mostly in agreement with efforts to strengthen this role. Questions to the ECB President also hovered around stable-coins and crypto-currency with concerns still abound about Europe being behind the US on these aspects. The ECB President, who has regularly professed skepticism on crypto-currencies, admitted that Euro stable-coins can be a great marketing-tool for the Euro but reiterated on risks.
The ECB Chief also advocated for providing more swap and repo lines to European partners to increase international Euro liquidity.
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