The European Central Bank is continuing preparations for a retail digital euro. Cointelegraph, a blockchain outlet, reported on Oct. 17 that ECB President Christine Lagarde (크리스틴 라가르드) said in a speech at the International Monetary Fund annual meeting that a digital euro would further spur innovation and competition in retail payments.

Lagarde said it is not intended to replace cash, but to prepare a digital form of cash for everyday payments. She also said the coexistence of public and private payment instruments would support Europe’s strategic autonomy in payments.

Lagarde said the euro zone inflation rate of 3.8 percent in September mainly reflected high energy costs. The ECB expects energy costs to ease next year.

She said euro zone inflation is expected to remain above the ECB’s target until the first half of 2027 due to the energy shock. Even in this situation, a gradual policy response is appropriate, Lagarde said.

The ECB also launched Pontes on Sept. 21, a system that allows financial institutions to settle tokenised asset transactions for institutional use in central bank money. The system was presented as an alternative to private payment assets such as stablecoins, with an initial rollout of core services and full implementation targeted for 2028.