ECB Leader Proposes CBDCs as a Means of Crisis Management and Oversight

In a recent viral video prank, the president of the European Central Bank (ECB), Christine Lagarde, hinted at using the upcoming digital euro, a central bank digital currency (CBDC), for limited control over payments made by individuals.

In the video, Lagarde was interviewed by someone pretending to be Ukrainian President Volodymyr Zelensky, and the topic of discussion was the backlash in Europe over the introduction of the digital euro. Lagarde acknowledged the need for control and stated that a “limited amount of control” would be exercised through the digital euro.

However, Lagarde also acknowledged the danger of completely anonymous, small transactions, which could be used to finance terrorist attacks. The introduction of the digital euro could help Europe avoid dependence on unfriendly country currencies or private corporate entities like Facebook and Google.

Lagarde has been concerned about the growth of cryptocurrencies and their threat to traditional banking systems. She has also demanded greater oversight over the crypto industry, claiming that crypto assets are “worth nothing.”

The ECB’s plans for the digital euro prioritize e-commerce and person-to-person payments during the first phase, followed by physical stores and government payments in the second phase.