European Central Bank President Christine Lagarde said the euro-area economy remains resilient and signaled that the ECB is moving ahead with a digital euro for everyday retail payments. Speaking in a statement delivered at the International Monetary Fund Annual Meetings on Saturday, Lagarde said the euro area’s 3.8% inflation reading for September was driven largely by elevated energy costs, which the central bank expects to ease next year. She added that the energy shock is still likely to keep inflation above the ECB’s target through the first half of 2027, though a measured policy response remains appropriate.
Lagarde also outlined the ECB’s retail payments agenda, saying the institution is preparing a digital euro to complement cash rather than replace it. She said the project is intended to support day-to-day payments while encouraging innovation and competition in retail payments. In her remarks, Lagarde said the continued coexistence of public and private payment solutions would help support Europe’s strategic autonomy in payments.
The comments come after Cointelegraph reported on Sept. 21 that the ECB had launched Pontes, a system designed to let financial institutions settle wholesale tokenized asset transactions in central bank money. The system was presented as an alternative to private settlement assets such as stablecoins. It currently offers a core set of services, with full implementation expected by 2028.
European Central Bank President Christine Lagarde said the euro-area economy is resilient and said the ECB is preparing a digital euro to complement cash in everyday payments.
Lagarde links September inflation to energy costs
In a statement delivered at the International Monetary Fund Annual Meetings on Saturday, Lagarde said the euro area’s 3.8% inflation rate for September largely reflected high energy costs. She said the ECB expects those pressures to ease next year.
Lagarde also said an energy shock is expected to keep euro-area inflation above the central bank’s target through the first half of 2027. Even so, she said a measured policy response remains appropriate.
ECB outlines retail digital euro plans
Lagarde said the ECB is also devising a digital euro. In her words, 「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.」
Pontes system already launched
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. The setup provides an alternative to private settlement assets such as stablecoins.
The system initially offers a core set of services, and full implementation is expected by 2028.
Related digital euro development
Cointelegraph also referenced a related ECB position that said the digital euro app will exceed European Union accessibility standards.
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