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CBDCs (Central Bank Digital Currencies) are a frequently discussed topic among crypto enthusiasts and are often considered a perfect dystopian tool in the hands of oppressive governments and autocratic regimes.
In their essence, CBDCs are blockchain-based fiat currencies that function similarly to cryptos and are controlled by central banks hence the dystopian considerations.
Let’s delve deeper into the complexity of CBDCs and discuss a few arguments why they can be both bad and good for the public.
The utopian vision of CBDCs
Two main arguments for CBDCs are bridging the unbanked gap and empowering the underprivileged.
CBDCs seek to eliminate barriers that have excluded a significant part of the world’s population from traditional banking services t least, that’s what central banks and governments want us to believe.
The main argument for CBDCs is to let unbanked and banked citizens have a digital alternative to conventional banking.
It can potentially create opportunities for economic participation and empowerment.
CBDCs are alternatives for cryptocurrencies that are widely used for online transactions for varying purposes.
In financial markets, financial trading, entertainment, finance and many other sectors, cryptos are becoming a popular method for storing and transferring value.
They are fast and secure and do not require middlemen.
Ways to maintain privacy could include using alternative digital currencies for important activities such as financial trading, or using special types of accounts that require no financial involvement from the citizen’s side.
CBDCs should provide similar capabilities to traditional fiat currency, making them flexible to modern technology and developments.
The main utopian narrative for CBDCs is empowerment for marginalized communities.
Reduced reliance on intermediaries and user-friendly digital interfaces allow CBDCs to grant underprivileged greater control over their finances until they agree with their governments.
The main issue with CBDCs is that governments can freeze any opposition assets, rendering their financial capabilities almost zero.
We will discuss the dark side of CBDCs in more detail below, but for now, we should agree that they can really have use cases for creating a more advanced society.
Since our civilization tends to follow and adopt technical advancements, CBDCs are here to stay, and they have serious challenges to…
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