Life has changed a lot and continues to change, especially with the advent of technology. These days, many of us are enthusiasts of new technologies, ready to embrace anything new without necessarily assessing the clear and obscure objectives behind them. While technological advances such as television, cell phones and other connected devices are fascinating, it’s important to understand the intentions behind their creation.
In this context, the CBDC, the world’s first digital bank, is revolutionizing our monetary system by gradually moving us towards the adoption of a digital currency. In the United States, for example, a law was recently passed quietly, without any media fuss, to activate this new CBDC system.
What exactly is the CBDC?
CBDC, or Central Bank Digital Currency, is a digital currency created to counter Bitcoin and other decentralized currencies. Unlike Bitcoin, which is decentralized and not dependent on any central authority, CBC is centralized and controlled by major banks and governments. This new technology is arousing divergent opinions among American politicians. Some see it as a good idea and a wonderful step forward, while others see it as a bad idea.
Compared to Bitcoin, which is a decentralized digital currency enabling unregistered transactions without intermediaries, the CBDC is a centralized digital currency controlled by big banks and governments.
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In 2020, a report indicated that only 35 countries were ready to adopt the CBDC. Today, over 114 countries have accepted the CBDC, representing nearly 95% of the world’s GDP. Of these countries, 60 are already at an advanced stage of CBC development, and 11 have already launched their own CBDC. These include Nigeria, Bahamas, Eel, Dominican Republic, Grenada, France, St. Lucia, St. Vincent and the Grenadines, Jamaica, and many others.
China, meanwhile, plans to implement its CBDC system by the end of 2023, and 18 of the 20 G20 countries are already at an advanced stage of CBDC development. Each G20 country has invested considerable time and resources in this project. This rapid move towards CBC raises many questions and concerns.
Is the CBDC a good idea or not?
Some of the arguments in favor of CBDC point to its efficiency for real-time payments, its complementarity to current forms of money and financial systems, its potential for improving international transfers and reducing transaction costs. The CBDC is also said to benefit low-income families. However, there are also concerns about its impact. Some fear great instability, operational difficulties, risks of cybercrime and partial or total loss of privacy.
Indeed, with CBDC, all transactions would be recorded and accessible to anyone, calling into question the anonymity of transactions. This raises concerns about privacy and individual freedom. In addition, the CBDC would give the government extensive control over individuals’ financial transactions and behavior. This raises questions about freedom of choice and the possibility of government restrictions, such as consumption quotas or travel restrictions. Was it convenient for you to know that someone might be privy to all your expenses? This new CBDC system is simply a program to control populations, control their purchases, and control their lifestyle.
The institutions supporting this program and their intentions
Four major banks support the CBDC: Wells Fargo, Citibank, Chase Financial Freedom. Their aim is to counter the evolution of Bitcoin and other currencies, and turn everyone to the CBDC. Indeed, the CBDC’s centralization and government control falsely suggest that it is better than Bitcoin, for example, which is decentralized and more expensive for the average person. However, this is not the case. It is therefore necessary to understand the stakes and the obscurity of this situation.
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The need to take a step back from the situation to better reflect on the issues at stake
On the other hand, it’s crucial to think through the implications of CBDC and compare it to other alternatives, such as Bitcoin, which is for free thinkers, and for people who want to advance and progress of their own free will and offers greater freedom and anonymity in transactions. While some see the CBDC as progress and a means of strengthening government control, others see it as a threat to individual freedom and privacy. It is indirectly linked to the recently introduced program to combat global warming, as it will now be possible to refuse the purchase of food, for example, that contributes to gas emissions.
The whole world is facing a general de-dollarization, pushing the richest into poverty. So, to avoid this phenomenon, the alternative is to use CBDC. So the question is: do you prefer CBDC, which promises faster and cheaper transactions but is tightly controlled by banks and governments, or do you prefer a decentralized technology such as blockchain, which offers more freedom and individual autonomy? The decision is in your hands. Is CBDC a major technological advance or a threat to our freedom and privacy? Science without conscience is but the ruin of the soul!
