EUROPE - Lagarde Sees Digital Currency Coming

Arno Froese

European Central Bank President Christine Lagarde signaled that her institution could create a digital currency within years in what would be a dramatic change to the euro zone’s financial sector.

“My hunch is that it will come,” Lagarde said during a virtual panel discussion hosted by the ECB. “If it’s cheaper, faster, more secure for the users then we should explore it. If it’s going to contribute to a better monetary sovereignty, a better autonomy for the euro area, I think we should explore it.”

The president said it might be two to four years before the project could be launched as it addresses concerns over money laundering, privacy, and the technology involved.

That’s still fast compared to its peers. On the same panel, Federal Reserve Chair Jerome Powell and Bank of England Governor Andrew Bailey reiterated their caution. Powell said the Fed will “carefully and thoughtfully” review the issue, and Bailey said there’s a “lot of hard work to think through the implications.”

The ECB took a major step by launching a public consultation that runs until the middle of January. Policy makers intend to decide around mid-2021 whether to initiate a full-fledged project and prepare for a possible launch.

China is also advance with plans for a central-bank digital currency.

“We’re not racing to be first,” Lagarde said. “We are moving ahead diligently, not incautiously. We will be prudent.”

-www.bloomberg.com, 12 November 2020

Arno's commentary

There is little doubt that digital currency is safer in many ways. As ECB President Lagarde says, it will contribute toward the fight against international money laundering crimes. This is just one step closer to total financial control. The world has progressed from bartering to hard currency, and later paper money. BankNoteWorld.com reports that paper money originated in China during the Tang Dynasty. It was the famous traveler, Marco Polo, who visited China sometime in 1275 and discovered Chinese paper money.

Today, the whole world uses this system, although much more sophisticated and technologically advanced ones exist. It’s still just a piece of paper; or in Australia, plastic. In actual fact, it’s intrinsically worthless; you can’t eat it, you can’t put it in your fuel tank, but people the world over have faith in their currency. Subsequently, it became the powerhouse that drives the world economy. 

Digital currency is just the next logical step. But all that is being worked on in conjunction with personal identity—for example, a credit card. When one opens an account with a company, the number becomes the decisive identity. From that point on, the possessor of the card can go shopping. This reminds us of Revelation 13:17: “And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.”

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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