ECB President "Technical preparations for the digital euro completed…only legislation remains"

The European Central Bank (ECB) said it has completed the technical preparations for introducing a digital euro, and that the remaining task is the related legislative process. Regarding monetary policy, it reaffirmed its previous position that it will not pre-commit to a specific interest rate path.

On the 18th (local time), according to cryptoasset-focused media CoinDesk, Christine Lagarde, ECB President, said, "Technical preparations for the digital euro are already complete," and "what remains now are political decisions and the legislative process." The digital euro is a central bank digital currency (CBDC) issued by the eurozone's central bank.

Lagarde said on monetary policy, "The ECB does not commit in advance to a specific interest rate path," and "future decisions will be made on a meeting-by-meeting basis based on data." She projected that inflation will gradually slow and recover to the ECB's target of 2% by 2028.

The ECB left the eurozone's key interest rate unchanged at the monetary policy meeting on Thursday (local time). While the slowdown in the inflation rate continues, the assessment reflected that upward pressure from service prices and wage increases still remains.

Discussions on legislation related to the digital euro are underway at the European Parliament and at the member state level. If a legal basis is established, the ECB plans to decide step-by-step on whether to introduce the digital euro after a pilot operation.