Lagarde says the eurozone economy is resilient and the digital euro is imminent

According to the head of the European Central Bank, "the digital euro will further stimulate innovation and competition in retail payments."

European Central Bank President Christine Lagarde said the euro zone's September inflation rate of 3.8 percent largely reflected high energy costs, which the European Central Bank expects to ease next year.

While the energy shock is expected to keep euro zone inflation above the bank's target through the first half of 2027, a measured policy response remains appropriate, Lagarde said in a statement at the IMF's annual meeting on Saturday.

Meanwhile, the European Central Bank is designing a digital euro, Lagarde added. "In the retail space, we are preparing to complement cash with its digital equivalent - the digital euro - for everyday payments. The digital euro will further stimulate innovation and competition in retail payments and ensure that the continued coexistence of public and private solutions underpins Europe's strategic independence in payments."

Cointelegraph reported on September 21 that the European Central Bank has launched Pontes, a system that allows financial institutions to settle tokenized asset transactions in bulk with central bank money, providing an alternative to privately settled assets such as stablecoins.

The system will initially provide a core set of services that are expected to be fully implemented by 2028.