The European Central bank is to conduct a public consultation on the possible creation of a digital euro, after a high-level taskforce sketched out possible scenarios that would require central banks to mint their own cryptocurrency.

The Eurosystem task force, bringing together experts from the ECB and 19 national central banks of the euro area, reported that an increased demand for electronic payments in the euro area could require a European risk-free digital means of payment.

Issues that might provoke the issuance of a digital euro include a significant decline in the use of cash as a means of payment and the launch of a global private currency, such as facebook’s Libra, that might raise regulatory concerns and pose risks for financial stability.

The euro belongs to Europeans and our mission is to be its guardian. Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.

Christine Lagarde, ECB president

Read: A step closer to the creation of a digital euro?

Read: Ten things you should know about Central Bank Digital Currencies.

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