The topic of a central bank digital currency (CBDC) continues to permeate the digital currency arena. The question is, “Does a CBDC warrant anything special, and should we really be paying attention to such a concept?”
A CBDC May Not Be the Best Thing for America
A CBDC is a digital asset issued not by any specific blockchain or token company. Rather, it stems from a centralized bank (i.e., Wells Fargo, Chase Bank, Bank of America, etc.). It’s handed out like paper money, and it’s dealt with in a similar manner.
There are some that believe the issuance of a CBDC would ultimately bring the crypto arena to its highest level. This would mean the digital currency space would become legitimate; it would reach a degree of mainstream appeal that would be undeniable to even the most hardcore deniers.
At the same time, one cannot ignore the issues that come with a CBDC, a big one being that it’s coming from entities that were never designed to take part in the crypto arena to begin with, nor were they invited to step in when assets like bitcoin first arrived on the scene well over ten years ago.
A few years back, a version of a CBDC was unveiled in China. Many analysts took issue with the structure of the token in that it allowed Chinese regulators to spy on users and see what they were utlizing the coin to buy.
This goes against the very notions of crypto. Digital currencies were built to give their users full independence and autonomy. If it’s going to be treated like a normal form of fiat – an asset that’s doled out by a standard bank – then why’d we ever bother setting up these rules and ideals for independence in the first place? The entire situation is very incongruous.
There’s another major problem in that with the current U.S. administration being so tied to and influenced by China (Joe Biden has literally garnered millions from the Chinese government and lied about it), one can easily assume that those in charge, should they build a CBDC, will model theirs exactly like the currency introduced in the east. It will have the same structure, and it will probably be used to spy on traders.
Underlying Problems
Over the past several months, many governors and regional leaders – like Kristi Noem of South Dakota and Ron DeSantis of Florida – have recognized the underlying evil that can easily strike via the issuance of a CBDC. They have thus either vetoed bills permitting the creation of such assets, or initiated laws preventing their establishment outright.
Examining all this, crypto fans throughout America need to realize that a CBDC, at least right now, would be a tool that could ultimately hurt them rather than aid them.
