ECB President Says Digital Euro Will be Used to Control People’s Payments

The European Central Bank (ECB) President Christine Lagarde has revealed plans to launch a digital euro (Central Bank Digital Currency), noting that there will be control over payments. Christine revealed her plans in a video which happens to be a prank video in which she believed she was communicating with Ukraine’s President Volodymyr Zelensky. 

On April 6, a news outlet featured the video, raising the eyebrows of so many individuals in the crypto community, especially because of the statements she made that the digital euro will bring about control over people and payments. Although, some users have a different view claiming that users will have no choice but to move to decentralized currencies such as Bitcoin (BTC).

The president further defended her move by stating that she does not want the European Union to be dependent on the currency of an unfriendly nation or a friendly nation whose currency is activated by a private body. 

Recall that the ECB has favored CBDCs as a better cross-border payment option in comparison to bitcoin, stablecoins, and others signaling its positive stance towards blockchain technology because of its superiority in compatibility with foreign exchange conversions. Meanwhile, the plans to introduce an alternative digital payment method (CBDC) have been under a two-year investigative phase and hopefully will be decided in October 2023.

ECB Execs Advocate for Crypto Regulations

Executives of the ECB which is the central bank for 27 member countries have called for improved regulations after recent tragedies that befell the crypto ecosystem.

The ECB Chief said that crypto regulation is an absolute necessity especially now that the Bahamas-based exchange FTX has crashed. Recently Fabio Panetta, an executive board member at the ECB also echoed this thought noting that there is a more urgent need for crypto regulation for these “speculative assets” that “lack any intrinsic value.”

Note that the Union’s novel MiCA bill designed to regulate the industry has completed a tripartite deal needed for its implementation after European parliamentary officials voted massively in support of the bill. The bill will become law at the start of 2024 at the earliest.