Lagarde: Eurozone Economy Resilient, Digital Euro to Be Launched

ChainCatcher report: ECB President Lagarde stated that the Eurozone’s 3.8% inflation rate in September primarily reflects high energy costs, and the ECB expects relief next year. She noted that the energy shock is projected to keep Eurozone inflation above the central bank’s target until the first half of 2027, but a cautious policy response remains appropriate at this time. These remarks were made on Saturday during the IMF Annual Meetings. Lagarde also indicated that the ECB is designing a digital euro. She said that in the retail payments sector, the ECB is preparing to complement cash with a digital euro for everyday transactions. The digital euro will further stimulate innovation and competition in retail payments, ensuring the continued coexistence of public and private solutions, thereby supporting Europe’s strategic autonomy in payments. Previously, on September 21, Cointelegraph reported that the ECB has launched the Pontes system, enabling financial institutions to settle wholesale tokenized asset transactions using central bank money, offering an alternative to private settlement assets such as stablecoins. The system initially provides a core set of services and is expected to be fully operational by 2028.