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(Bloomberg) — A digital euro has a key position to play in safeguarding European fee autonomy, in line with European Central Financial institution President Christine Lagarde.

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She warned that it’s very unhealthy to depend on a single supply for crucial points of each day life. This was highlighted by Russia’s choice to weaponize power provide following its invasion of Ukraine.

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“If you have a look at your pockets and also you have a look at your phone and see the purposes that you simply use for funds or the playing cards that you simply use for fee, you very quickly understand that these technique of funds are usually not essentially European,” she instructed a digital panel on central-bank digital currencies hosted by the Financial institution for Worldwide Settlements.

“So we simply need to watch out,” she added. “Some folks will name it sovereign autonomy, I favor to name it resilience as a result of that’s actually what it’s.”

The European Fee, the EU’s government arm, has mentioned it would make proposals for a authorized framework for a digital euro by the top of June. A ultimate choice on whether or not to go forward with it would come later.

Lagarde instructed the panel the final development is for much less use of money and extra digital funds.

“It’s supposed to be secure, it’s supposed to be sovereign and it’s supposed to be out there to all, wherever, any time and on the most cost-effective potential value, probably for free of charge, for probably the most primary capabilities,” she mentioned.

Nonetheless, she acknowledged {that a} digital euro can’t present the identical stage of privateness as financial institution notes.

“A digital foreign money won’t ever be as nameless as money,” she mentioned. “Which is why money will all the time be round.”

The dialogue was recorded on March 12 and broadcast on Tuesday, the BIS mentioned.