European Central Bank President Christine Lagarde said the euro-area economy has remained resilient while warning that energy costs are keeping inflation above the ECB’s target. She also said the central bank is moving ahead with preparations for a digital euro intended to complement cash in everyday payments.
Energy costs keep inflation elevated
Euro-area inflation reached 3.8% in September, according to Lagarde’s statement at the IMF Annual Meetings on Saturday, as reported by Cointelegraph. She attributed much of the increase to high energy costs and said the ECB expects those costs to ease next year.
However, the expected energy shock is likely to keep inflation above the central bank’s target through the first half of 2027. Lagarde said a measured policy response remains appropriate while the effects of the shock work through the economy.
The comments place the ECB’s digital-currency work alongside a continuing focus on price stability. A central bank digital currency, or CBDC, is a digital form of money issued by a central bank. In this case, the proposed digital euro would be designed for retail use, including routine payments by consumers and businesses.
Digital euro positioned as complement to cash
Lagarde said the ECB is preparing the digital euro as a digital equivalent to cash rather than as a replacement presented in the statement. She argued that it could encourage greater innovation and competition in retail payments.
The ECB president also linked the project to Europe’s strategic autonomy in payments. Her stated objective is for public and private payment solutions to continue existing together, giving users a choice while maintaining a role for central-bank money in the retail payments system.
The comments indicate that the digital euro remains an active ECB project, although the source material does not provide a launch date for everyday users. The ECB has also been working on infrastructure for tokenized financial markets.
ECB builds infrastructure for tokenized assets
Cointelegraph previously reported on Sept. 21 that the ECB had launched Pontes. The system allows financial institutions to settle wholesale transactions involving tokenized assets in central bank money.
Pontes offers an alternative to privately issued settlement assets such as stablecoins. Stablecoins are digital tokens designed to maintain a stable value, often in relation to a traditional currency. The system initially provides a core set of services, with full implementation expected by 2028.
Together, the digital euro and Pontes address different parts of the payments landscape: the former is intended for day-to-day retail payments, while the latter supports wholesale settlement between financial institutions.
Current market picture
Moneyiar market data at 17 October 2026 shows both tracked assets lower over the past day and week:
- Compound (COMP): $21.2542347197, down 3.91% in 24 hours and 14.8% over seven days, as of 21:39 +03:30.
- ORDI: $3.7366207865, down 4.5% in 24 hours and 14.41% over seven days, as of 21:38 +03:30.
These market movements are separate from the ECB’s inflation and digital-euro statements.
