Over the years, we've had several instances where central bank digital currencies have been discussed. Some countries have already launched one, others are actively exploring the concept but across the board, one thing remains true about the move:
Its threat to individual privacy, liberty and security. There's no reason why citizens of any nation should let themselves be tricked into believing that the purpose of a CBDC is in any way a means of strengthening national security or being a regulated and safe option to the assets it is trying to replace: crypto!
Crypto assets are fundamentally designed to be secure, accessible, private, low cost, to name a few core merits. Central bank digital currencies (CBDCs) on the other hand are just bank balances, rebranded and redesigned to be more controlled by the government. A world where every person transacts through a CBDC becomes a cage as control becomes easier when the means of trade is heavily centralized to the government.
This is, what US Democrat lawmakers want, according to recent reports:
US Democratic lawmakers characterized crypto as an outright “scam” in a Wednesday press conference, pushing for the development and rollout of a central bank digital currency (CBDC).
Representative Maxine Waters called the CBDC Anti-Surveillance State Act, a bill that would prohibit the creation of a government-controlled digital dollar, the “anti-innovation act.” The anti-CBDC bill and the GENIUS stablecoin bill “endanger our national security,” Waters said.
Representative Stephen Lynch, who also attended the press event, said crypto had no legitimate use case:
“As a committee, we've learned that there is no legitimate use case for cryptocurrency, as of yet, unless you count the illegal practices of every single ransomware heist that has affected US businesses, which have been fueled and facilitated by cryptocurrency.
“It’s a highly risky and volatile product that has no business in a functioning and well-regulated financial system. This entire industry is a scam,” he said. — Cointelegraph report
It's absolutely comical that central bank digital currencies (CBDCs) are considered “innovations” by these people despite the evident absence of originality and value.
Central bank digital currencies are nothing more than surveillance and control tools for the government and from the looks of things, they are not really afraid to admit that.
But of course, the big question is if they can get their way at the end of the day?
I think it is going to be a lot harder than they might think it to be. They can call crypto a scam engine all they want but traditional finance remains the primary industry where most illicit funds flow through and said transactions begin with the government through spending budgets.
That said, crypto assets are currently valued at $3.88 trillion in total industry market capitalization with over $200 billion in daily trading volume. It will prove difficult to tear down an industry already that far gone in global investment attraction and when we look at the developments in technology, it's a bold statement of an urgency, demanded by the people for new economic systems, designed to be flexible, not centralized and with incentivized experiences, ensuring that valuable economic contributions are yield-bearing.
The future is decentralized crypto assets, not CBDCs, whether the Democrats like it or not!