The President of the European Central Bank (ECB) Christine Lagarde said that the coronavirus pandemic has acted as a catalyst in boosting the adoption of digital payments in the European Union. Lagarde expects the majority of the consumers to continue using digital services even in the future.
In order to support the digitalization, the ECB has formed a task force, which is “exploring the benefits, risks and operational challenges” of developing a digital euro and is expected to announce its findings within the next few weeks.
While a central bank digital currency might build up consumer interest in the short-term, it is unlikely to sustain because the stimulus measures announced across the globe since the start of the outbreak have reduced the confidence in fiat currencies.
Daily cryptocurrency market performance. Source: Coin360