CBDCs Represent a Direct Threat to Democracy

We wrote before that central bank digital currencies (CBDCs) are an answer to a question no one asks outside of government.

Our concern is that the government would like to take the organic momentum that decentralized crypto has built and direct it into CBDCs, through which they could exercise more control of citizens and manipulate markets.

Ori Freiman, a postdoctoral fellow at the Centre for Ethics at the University of Toronto goes even further – saying CBDCs are a direct threat to democracy.

“The transition to national digital currencies gives governments the ability to automate transactions and create conditions under which it can be spent. This raises crucial implications about democracy that must be identified and considered before central bank digital currencies become a reality.

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“Central bank digital currencies are expected to hand authorities the ability to completely control the finances of their citizens. States would be able to restrict citizens from purchasing any services and goods, and governments would gain a greater influence and control over people’s lives.

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“It is up to democratic institutions to guarantee that actions like freezing bank accounts of political dissidents won’t become a common practice.

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“The bottom line is that central bank digital currencies are not just a matter of technology, but also a matter of political power and social justice. They have the potential to unleash unintended, unwanted and unexpected societal consequences — only time will tell what these consequences are.

Frei raises some questions that need to be asked before this rush to have the U.S. Treasury develop an American CBDC.

None of this is outside the realm of probable. In case you missed it, the Canadian officials did this exact thing to protestors during the massive and completely peaceful trucker rallies last winter in Ottawa.