As a seasoned crypto investor with a decade-long journey under my belt, I can’t help but observe the ongoing debates around Central Bank Digital Currencies (CBDCs) with a mix of intrigue and cautious optimism. Having navigated through the volatile waters of Bitcoin and other digital assets, I have learned to appreciate the resilience and potential of these financial innovations, while also recognizing their inherent risks.
People in Germany, Austria, Netherlands, and Slovakia are expressing opposition to the European Central Bank’s proposals for introducing a digital euro.
The concern is that a Central Bank Digital Currency will leave them dangerously dependent on technology. They also worry that a CBDC would intrude on their privacy and put savings at risk.
These fears stem from the ECB’s pursuit of a CBDC, which officials believe to be better than physical cash. Officials will vote on its implementation in late 2025.
Officers from the European Central Bank (ECB) shared with Bloomberg their plans for a digital euro, emphasizing its robust security measures and focus on user privacy. By employing encryption and hashing technologies, they aim to maintain the confidentiality of all transactions made using it.
Furthermore, the bank is committed to making the currency user-friendly for both senior citizens and recent arrivals.
2023 saw Christine Lagarde, the head of the bank, emphasize again that a digital euro would not replace traditional cash but rather exist alongside it. Remarkably, all digital euro transactions would be fee-free.
CBDCs and conspiracies theories
It is not just Europeans who are concerned about a CBDC.
In the U.S., politicians — especially those on the right — have come out against a digital dollar.
2024 presidential hopeful Donald Trump has pledged to resist Central Bank Digital Currencies (CBDCs) should he secure victory, viewing them as potentially harmful due to excessive government control.
Trump was once “not a fan” of Bitcoin (BTC) or cryptocurrency in general. See below.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
The ex-president, who has been impeached twice and is set to face sentencing for 34 state-level felony charges on September 18, has since become involved with that sector. Currently, he holds over a million dollars’ worth of digital currency.
As an analyst, I’d express it this way: I, as an analyst, find that Governor Ron DeSantis of Florida shares my skepticism towards Central Bank Digital Currencies (CBDC) and digital currencies issued by foreign entities.
Critics contend that central bank digital currencies could facilitate governments following China’s lead by implementing a system akin to a social credit score, where undesirable actions are penalized while favorable ones are incentivized.
The prospect of introducing a U.S. Central Bank Digital Currency (CBDC), also known as digital dollar, hinges on the endorsement from the Senate, the House of Representatives, and the President. Over the past few years, there has been an increasing number of central banks delving into or actively developing CBDCs.
The digital version of the Chinese yuan is currently in use, whereas the Bank of England is still in the process of creating a digital pound. A definitive call about the currency will likely be made within the following 2-3 years by the relevant authorities.
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2024-08-17 17:22