The previously “hidden” agenda of promoting central bank digital currencies (CBDCs) has come to light, after the publication of an interview with the head of the ECB, Christine Lagarde, on the basis of which “the creation of a digital euro will be decided next October”.

If Lagarde’s statements prove to be true, the habit of cash transactions will be further curtailed as the Eurozone transitions to an entirely digital system.

Lagarde argues that this move will limit the dependence of the European Union “on the currencies of unfriendly countries or currencies that are activated through a private enterprise”. The head of the ECB did not say that the CBDC will overrun traditional payment systems, but TDR analysts argue that it will be a closed circuit, whose transactions will pass through the “books” of the European Central Bank.

JUST IN: 🇪🇺 European Central Bank President reveals plans to launch a digital euro (CBDC), says there will be control over payments. pic.twitter.com/szCFxBkZDR

— Watcher.Guru (@WatcherGuru) April 6, 2023

Financing of “Terrorism”

Lagarde referred to the violent riots in France some ten years ago, which she claimed were “financed by small, anonymous credit cards”. She emphasised that although the digital euro may not be able to limit this small-scale financing (300-400 euros), she added that traditional money has often financed terrorism, which is a reason for additional checks by the ECB.

European regulators recently decided to impose a ceiling of €1,000 on cryptocurrency transactions in case of customer anonymity.

In France, the limit for withdrawing money from ATMs and cash transactions is also at 1000 euros for French taxpayers.