ECB president unveils plans to control CBDC payments during prank call

The European Central Bank (ECB) president Christine Lagarde revealed that the bank intends to introduce payment control into the digital euro CBDC. She made the statement during the prank call with the Ukrainian president impersonator.

Lagarde was involved in a prank call

In a recent incident, European Central Bank (ECB) President Christine Lagarde fell victim to a prank call from an individual impersonating Ukrainian President Volodymyr Zelensky. The pranksters, known for their politically charged hoaxes, managed to engage Lagarde in a conversation by posing as the Ukrainian leader.

The event has since garnered attention, raising concerns about the security measures for high-level communication between government officials and other influential figures.

According to Lagarde, the ECB has been researching the idea of a digital euro and has since launched a public survey to gather opinions from experts and laypeople alike. A resoundingly positive response of 80% of respondents supported a digital euro.

A digital euro is a form of the single currency that would be issued by the European Central Bank and function alongside bank savings and cash. It would be a digital method of payment that anyone could use, even people without access to conventional financial services.

Lagarde pointed out that the ECB would have the authority to oversee payments in a digital euro because it would be created with privacy and security in mind. There wouldn’t be any third parties involved in transactions, and it would be developed with these factors.

Implementing a digital euro would have advantages, including quicker and less expensive payments, more financial inclusion, and less reliance on the currency. However, there are also worries over the possible risks and difficulties connected with a digital euro, such as the influence on the financial system and cybersecurity vulnerabilities.

In July 2021, the ECB launched a two-year inquiry into a digital euro and has been updating the public on its findings.

Lagarde stated that a decision regarding the launch of one would be taken in October after the investigation’s conclusion on Sept. 29. The digital Euro might have a big impact on the global financial system and would mark a key turning point in the evolution of money and payments in Europe if it were to be implemented.