Bitcoin (BTC) and stablecoins should be considered in place of Central Bank Digital Currencies (CBDCs), according to the Bitcoin Policy Institute, a think tank based in the United States.
As per the whitepaper released on September 27th, authors including former Kraken growth lead Dan Held and Texas Bitcoin Foundation executive director Natalie Smolenski Ph.D. believe that CBDCs would deprive the general public of financial autonomy, privacy, and independence.
The Federal Reserve of the United States has not yet determined whether or not it would establish a CBDC, nor has it decided whether or not it will investigate the possible dangers and benefits that may be connected with it.
There was no mention of the central bank’s long-term goals in the discussion paper that was released by the central bank, which outlined the benefits and drawbacks of CBDCs.
According to the findings of a research, CBDCs have the potential to improve financial inclusion, enable payments across international borders, promote the stability of the United States currency, and boost public access to money issued by central banks. In addition to this, they do not have any credit or liquidity issues.
The problem with CBDCs:
Some countries, such as China, are already quite far along the path to the development of CBDC, but earlier this month, President Joe Biden gave the impression that the United States may consider doing the same after ordering the Office of Science and Technology Policy (OSTP) to compile a report analysing 18 CBDC systems. China is one of the countries that is already quite far along the path to the development of CBDC.
Previous discussions regarding CBDCs in the United States have been characterised by disagreement and misunderstanding, which is one of the reasons why one of the primary concerns of the authors with regard to CBDCs is the lack of knowledge on the part of governments, in addition to the possibility of breaches in privacy and control.
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