The European Union plans to develop a digital euro, which will be designed to complement cash, said member of the European Commission (EC) for economics Paolo Gentiloni, Interfax reports.

According to him, the ministers of economy and finance of the EU member states at the meeting focused on the need to develop a digital euro in order to avoid adverse effects on financial intermediation and stability.

European Central Bank (ECB) President Christine Lagarde has previously spoken out about the need to regulate cryptocurrencies because they are not backed by anything. She added that the digital euro could become a worthy replacement for cryptocurrency, and the ECB could launch it in the next four years.

In early April, the European Parliament adopted a bill on combating money laundering, under which each cryptocurrency transaction must be identified. According to the European Parliament, crypto companies will have to identify and track all participants in digital currency transactions, in addition to their customers. At the same time, the law also applies to private wallets of individuals.