The world could be facing a dark future thanks to CBDCs

During the financial crisis of 2007–2008, many people lost trust in traditional financial institutions and turned to alternative forms of currency, such as cryptocurrencies. It was a way for people to maintain their financial freedom and privacy in a system that had let them down. However, the rise of central bank digital currencies (CBDCs) raises serious concerns about privacy and freedom.

One of the most significant concerns with CBDCs is the death of anonymity. Currently, cash transactions offer the secrecy and anonymity needed for financial freedom. People can use cash to make transactions without leaving a paper trail, which is a fundamental right in a democratic society. However, the introduction of CBDCs could change this.

CBDCs would be fully traceable, meaning that every transaction would be recorded and monitored by the central bank. This would allow central banks to surveil and control financial transactions in ways that were previously impossible. While this may sound like a positive development, it raises serious concerns about privacy and civil liberties.

Related: CBDCs threaten our future, so it’s time to take a stand

CBDCs’ potential negative consequences can also be understood by examining the government’s response to the global financial crisis. For instance, in the aftermath of the crisis, governments all over the world established policies to stop the financing of terrorism and combat money laundering. Unfortunately, these regulations frequently came at the expense of people’s freedom and privacy.

For example, the Russian government has shrewdly used the Anti-Money Laundering framework to further goals unrelated to the fight against terrorism and organized crime. However, the research has revealed that the AML regime has been used by the Russian government to expand its strategic influence over domestic politics and business, as well as to try to restructure the banking system. The regime’s overall legitimacy is weakened by the inefficiency of AML rules and their use for covert purposes.

The 2001 Patriot Act led to abuses of power and violations of civil liberties in the United States. The Federal Bureau of Investigation’s Office of General Counsel found 13 cases of alleged FBI misconduct during intelligence operations between 2002 and 2004 alone, according to the Electronic Privacy Information Center.

Central bank digital currency (CBDC): Government control your money.

Bitcoin: You control your money.