Christine Lagarde, President of the European Central Bank (ECB) is about to create a borderless digital euro through the potential capabilities of CBDC which is now seen to be increasingly developed and improved by central banks around the world.
It is understood that the borderless nature of the digital euro can help address the resistance that may arise from cross-border settlements.
In fact, the 66-year-old French lawyer also stated that the matter could help cross-border settlements even though Lagarde thought digital assets should not exceed the appropriate limit.
According to Lagarde, the digital euro will not work as a substitute for cash because most individuals are used to fiat currency.
And if the ECB launches it, he will guarantee privacy protections to ease people's fears.
The digital euro is also said to protect the eurozone from the threat of other cryptocurrencies commented Fabio Penetta, Italian economist and member of the ECB's executive board.
He added that the advantage of CBDC is that it can maintain monetary sovereignty, increase competition and efficiency in payments and it also provides success.
Meanwhile, the central bank intends to consider CBDC because last year the ECB officially approved the investigation phase of CBDC which could take up to 2 years.
