“ECB Chief Advocates for CBDC as a Catalyst for European Unity”

European Central Bank (ECB) chairperson Christine Lagarde published a declaration on Friday praising the digital euro, a central bank digital currency (CBDC), as an integrating element in the European Union (EU) and stated that the ECB intends to introduce it “as soon as feasible.”

“While physical currency will persist in circulation, we desire cash to also exist in the form of a digital euro,” Lagarde mentioned, further explaining that the central bank digital currency could facilitate online transactions within the EU. She proceeded:

“This is a significant undertaking because the euro represents our currency, your currency. It unites us. It’s a mark of trust in our shared future, so we embark on this journey with the digital euro in the subsequent and final stage of preparation.”

The ECB governing council revealed on Thursday that it will proceed with developing the technical framework to test and implement a retail CBDC, scheduled to commence in 2029, contingent upon EU legislators approving regulations that permit the ECB to issue it.

CBDCs are broadly perceived as contrary to cryptocurrency and the foundational principles of permissionless, decentralized finance (DeFi). Detractors contend that CBDCs establish a digital confinement that may jeopardize civil liberties, freedom of expression, and human rights.

Related: European Central Bank selects technological partners for digital euro

ECB announcement faces strong opposition from the crypto sector

The ECB announcement faced significant backlash from the crypto sector and received predominantly negative reactions.

“Depart, witch, we’re opting for private currency,” Mert Mumtaz, the CEO of remote procedure call (RPC) node provider Helius, commented in reply to Lagarde and the ECB.