Lagarde says euro-area economy is resilient, digital euro under development

“The digital euro will further stimulate innovation and competition in retail payments,” according to the ECB president. European Central Bank President Christine Lagarde said September’s 3.8% euro-area inflation rate largely reflected high energy costs, which the ECB expects to ease next year. Lagarde said while an energy shock is expected to keep euro-area inflation above the bank’s target through the first half of 2027, a measured policy response remains appropriate, according to a >statement delivered at the IMF Annual Meetings on Saturday. Lagarde also confirmed that the ECB is devising a digital euro. “In the retail space we are preparing to complement cash with its digital equivalent — the digital euro — for day-to-day payments. The digital euro will further stimulate innovation and competition in retail payments, ensuring that the continued co-existence of public and private solutions underpins Europe’s strategic autonomy in payments.” Cointelegraph reported on Sept. 21 that the ECB had launched Pontes, a system that allows financial institutions to settle wholesale tokenized asset transactions in central bank money, providing an alternative to private settlement assets such as stablecoins. The system initially offers a core set of services, with full implementation expected by 2028. Related: ECB says digital euro app will exceed EU accessibility standards