Central Bank Digital Currencies - CBDC

In recent years, there has been considerable discussion about Central Bank Digital Currencies (CBDCs). Enthusiasts tout their potential benefits and critics highlighting the formidable challenges and outright dangers that lie ahead.

However, I believe this is a very bad idea. Not because crypto currencies in general are bad – I own some Bitcoin and Ethereum among others – it’s just that we’ve seen what corrupted people do with too much power.

It’s not the power which corrupts.

What is the problem are the type of people which power attracts which are usually the weak and criminal element among us. Those who can only feel special if they become the chosen moths to sit by the flame of power.

As the world moves towards a more digitized future, the concept of CBDCs has captured the attention of governments and financial institutions alike. For the very reasons I just stated above. I don’t believe governments or banks have a choice.

Why do I say this?

Because who is asking for this? Not I. Not you. The governments and the banks did not invent crypto currency. In fact, the financial industry has placed massive regulations on Bitcoin almost from the beginning.

However, despite the buzz, the actual implementation of CBDCs remains a complex and uncertain endeavor.

That’s a feather in our cap for now.

We must continue to push back with all we have on this. CBDCs can very well be the type of ‘tool’ that could end what’s left of our freedom for good.

digital money, Central Bank Digital Currencies, CBDCs

Exploring the Potential of CBDCs:

Central Bank Digital Currencies are envisioned as state-backed digital representations of a nation’s fiat currency.

Proponents believe that CBDCs could revolutionize financial systems by allowing the following;

enabling faster and more efficient cross-border transactions
lowering the cost of financial transactions
enhancing monetary policy tools
CBDCs could also reduce reliance on cash and private cryptocurrencies
Potentially offer more security and stability to our finances
Serve the unbanked population
Providing access to digital payment infrastructure to more people
CBDCs could offer governments greater visibility into financial transactions
Aiding in combating illicit activities like money laundering and tax evasion

All of this may be true – to some extent – and I’m sure these are the ‘benefits’ they will try to sell to us.

However, we can never, ever let them take control of the money system in this way. Without options we are giving away even more of our freedom than we have now.

Cash is King and always will be. CBDCs can be shut off with a click of a button. No. This can Not be allowed to happen in this world.

What are the Real Risks and Dangers of CBDC

CBDCs come with several risks and dangers. Besides the abuse of power which CBDCs come with there are other very real dangers. Here are a few examples;

CBDCs are vulnerable to cyber attacks, including hacking, fraud, and other types of cybercrime
Any disruption in the CBDC system could affect the operation of wholesale and retail payment infrastructures, causing financial shocks
Privacy Violations. CBDCs pose a substantial threat to financial privacy.
The use of CBDCs could lead to the creation of a centralized database of all transactions, which would be controlled by the government or central bank, which could lead to a loss of financial freedom
CBDCs could undermine both the foundation and future of financial markets by reducing credit availability.
Could cause destabilizing of the financial system by causing bank runs, as people may choose to withdraw their deposits and hold CBDCs instead
Banks may go away for good

As you can see… those are a lot of BIG risks. The good news is that there is no real appetite for this from most citizens of most countries. Our politicians are the ones that decide to do these things and then ‘sell’ it to us.

Several countries have already initiated pilot CBDC projects. However, widespread adoption remains a distant reality. Which is fine by me. This is not something we need.

Interoperability between different CBDC systems is yet another hurdle that must be overcome to ensure seamless cross-border transactions. This could be one of the biggest pitfalls, but it remains to be seen.

In Conclusion

Central Bank Digital Currencies hold immense promise. They offer the potential to reshape global financial systems which could be catastrophe for the average user. The potential for abuse is gigantic.

As governments and central banks continue to explore the possibilities, it’s clear that Central Bank Digital Currencies will remain a topic of conversation for the foreseeable future.

Let us not be fooled though. If there is a widespread adoption of CBDCs it will most likely be a gradual and meticulously planned process. We have seen this before. #Neverforget.