Christine Lagarde is the president of the European Central Bank (ECB). She previously served at International Monetary Fund, and is well known for her positive stance on innovative technologies in the financial world.

According to Lagarde, innovation in the area of payments is on the rise. She attributed this to the urgent demand for quicker and cheaper payments, especially international ones. Lagarde noted that ECB wants to play a significant role in this field rather than merely acting as a spectator of the changing world.

The ECB president mentioned that, in the years ahead, they will continue to access the costs and benefits of issuing a central bank digital currency (CBDC). She said that would ensure that the general populace is able to use central bank money even if the use of physical cash eventually goes down.

Lagarde added that, the prospects of central bank’s initiatives should neither discourage nor eliminate private market-led solutions. She believes that would lead to fast and efficient retail payments in the region. Lagarde also remarked that they are looking closely into the feasibility and merits of a CBDC. She believes it could have significant implications for the financial sector and for the transmission of monetary policy.

Featured Image Courtesy of Shutterstock