Experts and analysts have warned of the rise of CBDC(Central Bank Digital Currency) which might rob most people of their privacy. Even though there have been mixed reactions following the rise of CBDCs, the fact remains that most countries are adopting it.
Developed and developing countries have made plans to develop their own CBDC, which means there is no going back. With the majority of the countries still testing out their capabilities with the CBDCs, China is ready to launch its digital currency fully in the coming months.
The launch of the digital currencies is noted as an advantage to the government as they would be able to monitor how cash is deployed carefully.
Analysts say the rise of CBDC will eliminate transaction privacy
Even though the majority of the population see this initiative as a good one, an adverse factor it presents is that privacy on the part of investors would be eroded.
CBDC provides some critical features that physical currency doesn’t possess as it can be monitored and be shared amongst people that are deserving of the currency while leaving out others.
Another factor associated with the rise of CBDC is social credit. Citizens of a country should follow the rules of the state before they are allowed to own digital currency. In the words of analyst Andrew Torba, if the ruling party in China doesn’t find you worthy of holding the digital currency, you will be robbed of your right to buy food, take a bus, and some other amenities.
Analyst says the rise of CBDC could increase government power over entities
Andrew Torba has once been a scapegoat of payments platform, Visa Inc. as the company has already put his business as well as him under blacklist because he created a free speech network.
Presently, financial discrimination is being done on behalf of the governments in diverse nations by payment platforms. With the rise of CBDC, governments would be able to carry out financial sanctions without enlisting the help of any entity. Governments, or entities who are empowered by their government positions, can freeze the assets of any entity that doesn’t conform with the government.