A new video has recently gained significant attention for shedding light on the potential impact of a central bank digital currency (CBDC) on individual financial transactions and privacy.
On April 6, 2023, Watcher Guru, a leading news source for cryptocurrency, shared a video “featuring” a conversation between European Central Bank President Christine Lagarde and a Ukraine President Volodymyr Zelensky impersonator.
Lagarde didn’t realize it was a prank video and expressed her desire for a digital euro.
Too Late Now!
Significantly, the ECB President came clean during the discussion that Europe’s central bank digital currency (digital euro) will be poised to maintain transactional control.
The ECB has been conducting two-year research on the feasibility of a digital euro. The investigation ends in September. In the clip, Lagarde said the decision wouldn’t be made until October 23.
She stressed the need to issue a digital euro in light of the current situation. The President listed China’s yuan and Russia’s currency as two unfriendly countries’ currencies that Europe should not depend on.
In addition, she either voiced opposition to friendly currencies, which are ‘activated by private corporate entities’ like Facebook or Google.
The video gained significant attention on social media, with many expressing concern about Lagarde’s comments on the potential for control over people and payments.
It has been revealed that the video was a prank, with Lagarde speaking more candidly than usual, believing she was talking to Ukraine’s President. The pranksters behind the video have also targeted other public figures, including J.K. Rowling and George W. Bush.
She also acknowledged the potential for control over people and payments but suggested it would be limited control.
The President added that the European authorities are considering the minimum amount of transactions, but she also noted that terrorist attackers would benefit from small, anonymous transactions.
Not Very Popular
Lagarde’s statements have come under fierce criticism.
One of the main concerns surrounding the digital euro and other CBDCs is that it could monitor and control people’s spending, limit their financial freedom, and potentially erode privacy. The ECB President simply confirmed that threat.
On the other hand, some crypto members believe that her remarks may encourage people to turn towards decentralized currencies like Bitcoin.
ECB’s investigation into the digital euro is a significant development that could have major implications for the future of currency and payments.
Multiple press releases previously issued indicate that the Eurogroup has been regularly exchanging views on the key political dimensions of a digital euro since the investigation was launched.
However, future decisions have yet to be made on the possible issuance of a digital euro. If approved, a digital euro would represent a significant change with a range of potential challenges and benefits, and the ECB is carefully considering the effects of such a change.
There is no official timeline for introducing a digital euro, but the ECB has announced that it will release more information on the subject in mid-2023.
Some ECB members have voiced opposition to the digital euro, expressing concerns about its potential impact on the financial system and monetary policy.
In January 2021, ECB board member Fabio Panetta spoke about a digital euro’s potential risks and challenges, including privacy, cybersecurity, and financial stability.
He also noted that a digital euro could have implications for monetary policy, as it could change how money is held and used by individuals and businesses.
Similarly, in March 2021, another ECB board member, Jens Weidmann, stated that he was skeptical about the need for a digital euro and expressed concerns about its potential to undermine the traditional banking system.
Despite these concerns, the ECB has continued investigating the digital euro. President Christine Lagarde states that a decision about launching a digital euro will be made in Q3/2023.