00:00No, Christine Lagarde doesn't want to scrap cash to fight climate change.
00:09A video is being shared on social media which allegedly shows Christine Lagarde,
00:13president of the European Central Bank, calling for the abolition of cash in order to reduce our
00:18carbon footprint. According to this post on X, Lagarde hopes to stop climate change by overhauling
00:23the entire economy, including completely eliminating cash. The post says it's the
00:28biggest scam on the planet. But really, the closest thing to a scam here is the post itself.
00:34Other similar posts suggest that the ECB is planning to fully replace cash with the
00:37digital euro, which is currently under consideration. In the attached video,
00:41Lagarde does indeed mention re-evaluating the use of banknotes to improve our carbon footprint,
00:46but her words have been taken out of context. Nowhere does she mention getting rid of cash
00:51altogether. Instead, a look at the ECB's climate plans posted on its website in early 2024
00:57shows what Lagarde was most likely getting at. As part of its 2030 carbon reduction targets,
01:03the ECB will work to include eco-design principles for future euro banknote series
01:08and incorporate environmental footprint considerations into the design of a digital
01:12euro that is currently in the preparation phase. What that means is that the ECB is
01:16planning to print banknotes with 100% organic cotton by 2027, according to the bank's climate
01:22and nature plan. Last December, an ECB study showed that the average environmental footprint
01:27of banknote payments was 101 micropoints per euro area citizen in 2019. That's the equivalent of
01:34driving a car for eight kilometers, or 0.01% of the total environmental impact of a European's
01:40annual consumption activities, according to the study. The ECB has also made clear that it wants
01:45to make euro banknotes as environmentally friendly as possible, while ensuring cash
01:50is widely available and accepted.
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