While many countries have begun to show interest in studying and producing central bank digital currencies (CBDCs), Cardano founder Charles Hoskinson revealed the existence of such digital assets is a bad idea.
In any case, the issuance of CBDC by the government actually has a negative impact in addition to wanting to compete with the capabilities of cryptocurrencies in terms of: efficiency and cost.
It is well known that the CBDC is controlled by the central bank and this is an issue because there is no interest in privacy and control.
In fact, some even argue this is the only way for the government to monitor and restrict transactions in an effort to prevent money laundering, terrorism financing, and more difficult for consumers who want to make charitable contributions.
Why CBDCs are a really bad idea https://t.co/llJZ3zgvyQ
- Charles Hoskinson (@IOHK_Charles) April 3, 2022
In a Joe Rogan podcast video shared by Hoskinson recently, the invitation-Maajid Nawaz stressed the CBDC will be programmed according to the government’s wishes.
For example, the Bank of England has issued directives to ministers to determine limitations on the use of CBDCs which may not apply to certain types of food and services.
Nawaz also made a comparison between the CBDC with vouchers that can be used if approved by the government, and a system equivalent to China’s social credit system.
Here he emphasizes the risk of CBDC when the government becomes uncontrollable in controlling everything due to the privilege of decentralized cryptocurrency.
So far, several countries already have and test their CBDCs: The Bahamas, Brazil, China, Russia, and South Korea.
Is the presence of CBDC worth worrying about or celebrating?
“CBDC is not a crypto. It is a government monitoring tool. Crypto offers freedom, not destruction. ” - Tom Emmer, Member of Congress for Otsego, Minnesota.
