Bitcoin and the CBDC: Christine Lagarde dodges critical questions

Christine Lagarde is convinced of the digital euro, but the public, especially the Bitcoin community, is not. Is the president of the European Central Bank (ECB) aware of the criticism?

Whenever the European Central Bank publishes anything about the digital euro, one thing is certain: a flood of criticism on social media, especially on X (formerly Twitter). "The digital central bank currency (CBDC) is the end of financial freedom," writes one user. Another adds, "CBDC sucks." What is rare is support for the digital euro.

This also caught the eye of Cypriot MEP Fidias Panagiotou. Fidias is a YouTuber from Cyprus who was elected to the European Parliament. On X, the 24-year-old shares videos about the affairs of the European Parliament and makes his decisions based on direct votes by the Cypriot people.

On Sept. 23, Fidias raised questions about the digital euro, the development of which was estimated to cost up to a billion euros. Among his message, many critics gathered, including a large group of Bitcoin fans.

Christine Lagarde on the digital euro: "Feedback from people is important"

Fidias also noticed this resistance, which is why he addressed Christine Lagarde, the ECB president, during a recent round of questions. "It is clear that European people are very skeptical of the digital euro. They prefer cryptocurrencies, especially Bitcoin," said Fidias.

His question was clear: "Are you considering what people think about the digital euro?" Christine Lagarde stressed how important it was for her to "customer feedback" to get to develop the right product. She added:

"Why should central bank money exist only on paper when everything becomes digital? This is also why we think a digital banknote is needed. A banknote that is secure, affordable, and that every European can use anywhere."

However, according to many users on X, Lagarde did not fully answer the question. "She says she is open to people's opinions but does not address their criticisms," noted one user.

Christine Lagarde ignores question on Bitcoin

In a second question, Fidias wanted to know what Christine Lagarde thinks about cryptocurrencies and Bitcoin. This question was ignored; according to a spokesperson, no second questions were allowed. In a voice-over, Fidias stated that Lagarde was upfront "had promised" answer questions honestly. "It seems she has not been honest," concluded Fidias.

The crypto community also had a response to this behavior on Twitter: "They ignored the question because Bitcoin cannot be controlled by the state. They want a currency over which they have complete control."

But it is not only in the traditionally government-critical Bitcoin community that the European CBDC is meeting resistance. A Bundesbank poll shows that about a quarter of respondents say the digital euro "not at all" want to use.

European CBDC: Pilot project to 2027

Since October 2021, the European Central Bank has been engaged in the development of a digital euro. It is a prestige project that should make payment transactions significantly more efficient. However, there are still legal hurdles to the introduction of the digital euro. If these are overcome by the end of the year, a pilot project would be possible until 2027.