CBDCs Bring Even More Centralization and Danger than TradFi
We’ve written before about how central bank digital currencies (CBDCs) are the answer to a question that no one outside of government asks. Central banks, regulators and governments want to steer the momentum for decentralized cryptocurrency built on blockchain into CBDCs — digital dollars that are centrally controlled and programmed.
In March, the Biden administration directed Treasury to explore creating a digital dollar. They also want to blur the line between crypto and CBDCs. We can’t let them. We aren’t the only ones who have sounded the alarm about this.
“Digital dollars, on the other hand, would be traceable and programmable. The Federal Reserve (or some other designated entity) would have the ability to create more digital dollars whenever it sees fit, and, depending on how the legislation is written setting up the currency, the dollars could be formulated to have various rules and restrictions built into their design.
“For example, a digital dollar could be crafted to restrict fossil-fuel use, to give bonuses to people for spending at particular businesses, to enact de facto price controls by disallowing users from spending too much on particular products, or even to redistribute wealth.”
Governments and their financial regulator despise the freedom that comes from private entities being able to float cryptos that can function as assets and money. CBDCs give the government even more control than traditional finance.
Investment banker Catherine Austin Fitts, a former cabinet level regulator herself, summarizes in just one minute and 13 seconds how much control a U.S. digital dollar could give the state.