On April 6, a video of European Central Bank (ECB) President Christine Lagarde discussing the CBDC digital euro was widely circulated, causing a stir in the crypto community.
However, it was later discovered that the video was taken from a three-week-old prank video.
In the original video, Lagarde appears to speak candidly, believing she is speaking to Ukraine President Volodymyr Zelensky.
When Zelensky brings up the issue of control over central bank digital currencies (CBDC), Lagarde admits that “there will be control,” but suggests it would be a “limited amount of control” for transactions under 300 or 400 euros. She also notes that small, anonymous transactions have been used to finance terrorist attacks.
While the video may have been a prank, Lagarde’s comments have still drawn criticism from the crypto community, particularly regarding the idea of control over people and payments.
Some users, however, saw the bright side, suggesting that it will push people towards using decentralized currencies like Bitcoin.
The ECB began investigating the digital euro in July 2021 and is set to conclude its two-year investigation on September 29. A decision on whether to launch a digital euro will reportedly be made in October.
The idea of a digital euro has been gaining traction in recent years as the use of cash declines and digital payments become increasingly popular. Proponents of a digital euro argue that it would make transactions faster, cheaper, and more secure.
However, critics have raised concerns about privacy, control, and the potential for digital currencies to undermine traditional banking systems.
The ECB has stated that any digital euro would be designed to complement, rather than replace, cash and would be subject to the same regulations and oversight as traditional currencies.
The ECB has also emphasized that the digital euro would not be used to track individuals or their spending habits.
While the idea of a digital euro may be controversial, it is clear that digital currencies are here to stay. As the world becomes increasingly digital, it is likely that we will see more and more countries exploring the idea of central bank digital currencies.
Whether they will be successful remains to be seen, but it is clear that the crypto community will be watching closely.
CBDC Can Be Used For Control
In Summary, the widely circulated video of ECB President Christine Lagarde discussing the digital euro turned out to be a three-week-old prank video. While Lagarde’s comments on the need for control over small transactions drew criticism from the crypto community, some saw it as an opportunity to push for decentralized currencies like Bitcoin.
The ECB is set to conclude its investigation on the digital euro in September, with a decision on whether to launch one in October. While the idea of a digital euro may be controversial, digital currencies are becoming increasingly popular, and more countries are exploring the idea of central bank digital currencies.