European Central Bank (ECB) President Christine Lagarde said it could take at least two years to fully launch the digital euro as privacy issues need to be resolved.

Speaking at a meeting of the European Parliament’s economic committee, Christine Lagarde spoke about the difficulties associated with launching a central bank digital currency. Lagarde said a balance must be struck between privacy and transparency before the digital euro becomes a reality.

Lagarde was asked how the ECB plans to ensure user privacy if limits are introduced on transactions and storage of the digital euro, because in this case it will become fully traceable. These restrictions were proposed to more effectively combat money laundering and prevent large holders of the digital euro from disrupting the commercial banking system.

Lagarde assured that the digital euro should ensure the privacy of users, although it will not be completely anonymous. A government stablecoin should be convenient, free and accessible to the public. Lagarde added that the ECB’s Governing Council will decide in October whether the pilot project for a digital euro will move forward.

Let us recall that in April pranksters pranked Christine Lagarde by conducting an interview with her on behalf of Ukrainian President Vladimir Zelensky. Lagarde said that with the help of the digital euro, governments will be able to control user payments.