ECB Holds Rates Steady, Finishes Digital Euro Prep

The European Central Bank held its key interest rates unchanged on Thursday, marking the fourth consecutive meeting without adjustment, as it signaled completion of technical preparations for a digital euro and urged European Union institutions to advance legislation.

In Frankfurt, ECB President Christine Lagarde announced during the central bank's final press conference of the year that the institution has finished its preparatory work on the digital euro, a public digital form of the currency designed to complement existing cash and ensure payment continuity in the digital era. "We have done our work, we have carried the water," Lagarde said, emphasizing that the next steps rest with the European Council and Parliament to review and potentially amend the European Commission's proposal into law. The ECB views the digital euro as an anchor of stability for the financial system amid rising digital payments, with features planned to make it user-friendly, efficient, private, and functional both online and offline. It would not replace physical euro notes and coins, which the ECB commits to keeping widely available.

Lagarde also addressed stablecoins, regulated under the EU's...