Image Source : FREEPIK U.S. based think tank warns against CBDCs usage
US-based libertarian think tank, Cato Institute, has released a report warning that a central bank digital currency (CBDC) in the United States would pose a threat to privacy and freedoms. The report suggests that a government-issued CBDC, backed by the Federal Reserve, would be detrimental to the free market and could be used to track and control individuals’ financial transactions, thereby restricting their privacy.
The report argues that the private sector is better suited to dealing with the risks associated with financial transactions, due to its more decentralized structure. The report recommends that the Federal Reserve and Department of the Treasury should be explicitly prohibited from issuing a CBDC in any form.
Concerns over privacy could also extend beyond the US, as a significant portion of global financial liabilities and claims are denominated in US dollars. While it remains unclear whether the US intends to issue a CBDC, the Federal Reserve’s FedNow service, a state-operated instant transaction banking portal, is set to go online in July. The ongoing discussions on Capitol Hill surrounding CBDCs remain a contentious issue for some, with Congressman Tom Emmer warning that they could be dangerous for both individuals and the government’s political opponents.
Central Bank Digital Currency (CBDC) refers to a digital version of a country’s fiat currency that is issued and backed by the central bank. CBDCs are essentially a digital form of cash that can be used for transactions, just like physical currency. CBDCs are based on blockchain or other distributed ledger technologies and offer features such as instant settlement, real-time tracking, and programmable money, which could lead to significant cost savings and increased financial inclusion.
Major cryptocurrencies prices on 9 am IST, 6th April 2023:
Bitcoin: $28,082.43 USD
-1.24%
Ethereum: $1,897.77 USD
-0.50%
Tether: $1.00 USD
+0.02%
USD Coin: $0.9997 USD
+0.00%
BNB: $314.42 USD
+0.37%
XRP: $0.5028 USD
-0.25%
Dogecoin: $0.09215 USD
-5.43%
Cardano: $0.3893 USD
-1.25%
Polygon: $1.13 USD
-2.72%
Polkadot: $6.40 USD
+1.94%
Tron: $0.06628 USD
+0.23%
Litecoin: $92.42 USD
-1.44%
Latest Business News
Source link
