Conspiracy theory is rising: Digital Euro is a darn trap!

A word on the digital version of Euro.

Source: Jutarnji list Thursday, 31.08.2023. | 15:38

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Mark Friedrich, a 47-year-old author of financial bestsellers, warns about microchips being implanted under people's skin due to the digital euro, while Jörg Meuthen, a member of the European Parliament, warns about secret government surveillance of citizens, as reported by Jutarnji list.

Friedrich gained prominence by opposing digital currencies on YouTube, where his videos have garnered over 350,000 subscribers. For him, this isn't a conspiracy theory; it's a genuine fear of where the world is heading.

"They'll tell you: 'Hey, it's easier, more organized, you don't have to touch this dirty money, and you won't get COVID or something similar. A thief can't steal your money anymore, but you can have a chip under your skin. It's a perfect tool for surveillance and digital dictatorship, it's a damned trap," says Friedrich.

Conspiracy Theories Arise

Politico notes that the ECB's plan does not involve implanting chips under the skin.

While there's no easy way to determine where legitimate criticism ends and conspiracy theories begin, valid reasons for opposing the digital euro continue to be presented. Psychologists say that what was once a niche topic has become a lightning rod for people who have become increasingly disturbed by such matters.

They also claim that something changed during the pandemic. A study published in the scientific journal Plus One last October suggests that COVID-related conspiracies acted as a gateway to other theories.

"If you believe the government lied to you about COVID or deliberately released the virus... Well, what else could they lie about?" said Havier Granados Samaioa, a postdoctoral researcher at the Annenberg Public Policy Center at the University of Pennsylvania and the lead author of the report.

"And when you seek information and communicate with like-minded individuals, they're likely to provide you with information about other conspiracy theories, and that can lead you down the rabbit hole. The digital euro is a perfect fit for people who fear that those in power have malicious intent. Bankers are a perfect representation of people who have control over you, and you really don't know what's happening," Samaioa believes.

"In politically chaotic times, conspiracy theories thrive"

This opinion is also shared by Peter Ditto, a professor of psychological science at the University of California and an expert in political conspiracies, who has suggested that the unrest in recent years has contributed to a new era of old theories.

"Even if we set aside the COVID pandemic - financial crisis, Donald Trump, Brexit, and the Russia-Ukraine conflict have upended many old certainties. When people feel they're living in politically chaotic times, conspiracy theories flourish, especially when there's already suspicion about the hidden motives of media, governments, and courts. That's why it's easier to believe that there are global elites trying to create digital money to eliminate physical cash from the world," said Ditto.

Politicians insist that one of the benefits of the digital euro and other central bank digital currencies (CBDCs), like those being introduced in the United Kingdom, the US, and Russia, is to ensure a form of state-backed digital cash amidst the rise of cryptocurrencies and Big Tech's plans to introduce their own money.

Laws on the horizon

Legislation enabling the introduction of the digital euro will come before European lawmakers in the coming months. EU Commissioner for Finance Marid McGuinness has already urged members of the European Parliament to move away from "Big Brother" rhetoric, while the Commission has presented design features it claims will protect payment privacy and proposed laws that would compel merchants to continue accepting cash.

Michael Huizing, a Dutch Member of the European Parliament who will oversee the legislation on behalf of the European Conservatives and Reformists group and is skeptical about the project, said there's a difference between those spreading conspiracy theories and those with legitimate concerns.

"We've had people who protested against COVID and were very successful at it, especially on social media. Donations came in, and now there's no more COVID, so they have to move on to the next big thing," Huizing said.

"My job is to read about their worries and listen to their concerns, not to say, 'You're crazy, you're an idiot,' but to say 'Okay, I understand where you're coming from.' And then try to lure people into a more acceptable realm of discussion," he believes.

Main Concerns

While some people believe that the true reasons for digital currencies could be more sinister than they initially appear, and politicians recognize that promoting them can garner votes in elections, authorities might find it harder to convince the public that they will protect privacy and safeguard the use of cash.

"My impression is that they actually don't want to do that because their ultimate goal is government surveillance and a cashless society. I am deeply concerned that the digital euro project is not just a useful additional instrument for future payments but that the real intention is the start of replacing any kind of cash payment," said Meuthen, a member of the German Center Party in the European Parliament.

Among people's greatest concerns, which governments and central banks have sharply rejected, is that digital currencies will enable the state to limit what people can buy. In Europe, these claims often relate to meat or fuel, to control obesity or climate change. In the US, populist politicians claim that certain sectors of society could be prevented from purchasing weapons.

"This will enable them to ban unwanted purchases like fuel and ammunition," said Florida Governor Ron DeSantis, a prominent opponent of Donald Trump in the Republican candidacy for the White House.

"The moment you give them the power to do that, they will impose a social credit system on this country. CBDC is a massive threat to American freedom," DeSantis believes.

In the United Kingdom, Nigel Farage, one of the architects of Brexit, used an interview with the BBC about closing his bank account in July to raise the issue of the digital pound.

"I know what it's like to have banks close accounts on you, and I want changes within the banks. Also, I want legislative changes, and I don't want cash phased out of the system in favor of a central bank digital currency," Farage said.

Faced with such remarks, politicians, and bankers fear for the fate of their "digital offspring."

"Discussions about the digital pound suggest concern about the authorities' desire to encroach on people's privacy, which is absolutely contrary to what we are doing. Some people were skeptical about the benefits that the iPhone would bring, and a little further back in history, about railways," said Andrew Bailey, Governor of the Bank of England, in a speech in July.

However, Friedrich continues to warn that "our freedom and democracy are in danger."

"I hope there's no plan, but to me, it doesn't make sense to create a digital euro unless you want to control people," Friedrich concluded.