Christine Lagarde, the president of the European Central Bank (ECB), has let slip that the forthcoming digital euro will be used to control payments made by individuals.
The prankster, pretending to be Ukrainian President Volodymyr Zelensky, challenged Lagarde on the backlash over the introduction of the digital euro, stating that people don’t want to be controlled. Lagarde acknowledged that there would indeed be some control, but emphasized it would be limited.
She further elaborated on the mechanism of zero control for very small amounts, such as €300 or €400. However, Lagarde warned that anonymity in these small transactions could be dangerous, as they could finance terrorist activities.
In support of a central bank digital currency (CBDC), Lagarde voiced her desire for Europe to be independent of unfriendly currencies such as the Chinese or Russian currencies or those activated by private corporate entities such as Facebook or Google. She argued that these could threaten the sovereignty of Europe.
It’s worth noting that Lagarde has previously expressed concerns about cryptocurrencies and their impact on the traditional banking system. She has warned that crypto assets could hinder the role of central banks as an anchor of the economy and called for greater oversight of the crypto industry.
The ECB’s plans for the digital euro prioritize e-commerce and person-to-person payments in the first phase of release, followed by physical stores and government payments in the second phase. Meanwhile, rumors are circulating that the US banking crisis was a ploy to speed up the adoption of CBDCs.
