Central Bank Digital Currency's, or CBDC for short, are an authoritarian governments dream. The fact that this would allow a government to know what you are buying at any given time is terrifying. Granted our privacy has been snatched from us by big tech a long ago, but I like having the option of having cash. The argument that seems to be apparent for CBDC's is that cash isn't able to be used online and therefore it is outdated. That's a fair argument, however, financial technology companies such as Cash App and Venmo allow for instant transfer of money. And Square, Mastercard, Visa, etc. allow purchases to be made instantly. CBDC's could be taken instantly from an individual if the government doesn't like a person. Meaning that you would never actually own your own money.
CBDC's are bad for the financial industry that has developed to help people deal with the digital age. Cryptocurrency also helps with this problem since crypto allows for transfer of money anywhere at any time without needing to be granted permission by a government or bank. The main difference between CBDC's and cryptocurrency is that crypto allows you to remain anonymous if you so choose to. This difference is the reason that governments are pushing for a CBDC. Governments want to know everything that their citizens are doing.
Another reason that governments are pushing for a CBDC is that there is a want and need for a stable currency. And for millions of people around the world, they find that stability with the United States dollar. The easiest way to obtain a US dollar is by buying stablecoins like USDT and USDC. This is the main reason that I do not see the United States pushing for a CBDC in the near future. However, I think that USDC is already pretty close to a CBDC but with more freedoms as of right now.
Currently, I don't see people accepting CBDC's in a massive way unless coerced to do so by their governments. If governments stop making cash and coins, then people will be forced to accept their dystopian CBDC's. Especially if said countries make cryptocurrency illegal by stating any reason they deem fit. I hope that most non-authoritarian countries will not push for such liberty destroying technologies as CBDC's, however I am pessimistic. Although I don't see the United States accepting it in the near term, other central banks, especially Europe's central bank, will most likely push for it.
Let me know what you think about CBDC's. Are they evil or am I just mistaken?
