The appointed governor of the European Central Bank, Christine Lagarde

The appointed governor of the European Central Bank, Christine Lagarde, spoke again about digital and cryptocurrencies.

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At a hearing of the European Parliament’s Committee on Economic and Monetary Affairs, Lagarde answered a number of questions, including some regarding cryptocurrencies.

Lagarde said he was in favor of exploring the idea proposed by the Governor of the Bank of England, Mark Carney, about a digital currency issued by the world’s leading central banks.

“I am fascinated by Carney’s proposal regarding the formation of a company by major central banks to explore the creation of a common digital currency.”

Carney’s idea is to create a digital currency similar to Libra, but issued by Central Banks.

Bitcoin and the rest

Lagarde added that it is necessary to distinguish between cryptocurrencies such as Bitcoin, which are speculative and volatile instruments, and stable currencies, which have a different future. Earlier, it had spoken about cryptocurrencies in positive relative terms, but acknowledged that it did not come under the authority of central banks.

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Instead, central bank-issued digital currencies (CBDCs) will have to comply with all existing rules and regulations. Both in terms of money laundering, terrorist financing, and financial stability.

Lagarde thus confirmed his interest in new technologies and cryptocurrencies, but stressed that his priority is CBDC. She will officially take over as governor of the European Central Bank in November. It would not be surprising if Lagarde and Carney launched the development of such a project.