The Governing Council of the European Central Bank (ECB) has decided the bloc needs a digital version of the Euro, and ordered work that could see it enter circulation in 2029.

Europe initiated a “preparation phase” for a Digital Euro in November 2023. Yesterday, the ECB said that effort succeeded. ECB President Christine Lagarde said developing a Digital Euro will make the currency “fit for the future.”

Asked why the European Union needs a Digital Euro, and if it is a solution in search of a problem, Lagarde said “The key points for me are : Money is a public good; central banks are the custodian of that public good; and central money issued by central banks has to have its digital form, because we're moving into a different era where not everybody will want necessarily to have banknote

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