Last month the House of Representatives voted to prohibit the issuance of a CBDC by the Federal Reserve and the U.S. Treasury Department. However, many Democrats were quick to jump to the defense of CBDC and tried to highlight how they were a huge "technological advantage" and how the U.S. was going to "fall behind because of this". Sadly it would not take much research for the Democrats to see that the examples that they were using with China were well.... terrible at a minimum.
It was only two weeks prior to this vote that an article came out about something that was going on with China's CBDC pilots and that was that
"state Chinese workers who are paid in “e-CNY” or digital yuan seldom use it and have been converting it to physical cash."
This issue doesn't take a rocket scientist to realize that well... Even in China with one of the most centralized and authoritarian regimes in the world workers do not trust the state. If they trusted the state they wouldn't be bailing out of this pilot project like they are but alas they are. In China and other repressive governments something like a CBDC is a great thing in their mind as with physical currency you cannot always control it but if it is all digital... a couple of clicks and poof your money is gone.
Given how aggressive China has been in promoting and pushing this CBDC and how there have been "benefits" from the government to use it, this trend shows the fundamental flaw most people in the crypto space identified early on. If a government with such extensive surveillance and control of individuals' lives cannot pull it off due to basic issues like this I find it highly likely that Western nations that embrace personal rights and have much more freedom are doomed to spend millions or billions in taxpayer dollars to realize it won't work in the long run. It shows that the House was right in passing this bill because it protected the government from spending money on something that does not have a future, especially in the U.S. where we have fought for much less.
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