The International Monetary Fund (IMF) today said it was in favor of the European Union exploring the creation of a digital euro in order to "not fall behind" other powers, but called for it to be "cautious and careful" in its implementation.

"The reality is that the EU cannot be left out of what is happening in the rest of the world. It is good that you are embarking on this journey," said IMF Managing Director Kristalina Georgieva at a press conference in Luxembourg, where she is attending the meeting of European finance ministers.

Thursday's meeting addressed the possible creation of a digital euro as a complementary means of payment to cash, an option that the European Central Bank (ECB) has been studying since 2021, on the eve of the European Commission presenting a proposal at the end of the month to establish the legislative framework that would be needed if the EU were to finally decide to implement it.

In this regard, Georgieva stressed that "it is very important for the EU to be very cautious and careful about how the development of the digital euro will proceed".

She said that "a lot of attention is being paid to this issue" and that the timetable set by the EU allows for a dialogue with banks to "ensure that there is no disruption to the way banks contribute to Europe's growth and well-being".

"Our feeling is that a very deliberate and careful approach is being taken," he said.

The IMF director-general stressed that currently more than 155 countries are at different stages of developing digital currencies backed by central banks and that some have made "quite significant" progress, such as the Bahamas, the "first to cross the finish line" with the creation of the "sand dollar", considered the world's first digital currency issued by a central bank.

But "the most interesting thing" is the development of the digital yuan in China, with a pilot project that "covers 188 million participants".

"The EU is doing the right thing by not lagging behind in these developments," he said.

The ECB will conclude in the fall the research phase on the digital euro that began in 2021 and will decide in October whether to proceed with its development, although the decision to finally put it into circulation will come later if and when there is political support from the member states. (Notícias ao Minuto)