Exploring the Privacy Concerns Around CBDCs
The future of money is digital and many countries are developing their own Central Bank Digital Currencies (CBDC). This in turn will have far-reaching implications on society, businesses, and banks, as the use of physical cash declines.
Retail CBDCs are government-backed digital fiat money which is regulated by the country’s central bank and seen as an alternative to crypto. But when it comes down to introducing CBDCs, there are concerns about data protection and security.
To use CBDCs individuals will have to part with personal information and this is where it gets sticky. Many individuals do not want their everyday transactions monitored. Let alone give the government access to this data which in turn could be used to control consumer behaviour on a mass scale.
Over the years Governments have pushed to develop CBDCs almost in response to crypto. Regulators and governments are wary of crypto due to the lack of transparency around the ecosystem.
Crypto remains volatile so is unlikely to be considered a currency despite El Salvador becoming the first country to make bitcoin legal tender in September 2021. We have yet to see if El Salvador’s Bitcoin bet pays off.
Most recently former US President Donald Trump grabbed headlines speaking in Portsmouth, New Hampshire. He defined CBDCs as a “dangerous threat to freedom.” Pro-crypto former presidential candidate Vivek Ramaswamy, who recently dropped out of his campaign, was also present on stage, officially endorsing Trump.Trump has been dismissive about the value of cryptos and central bank digital currencies (CBDCs) in the past.
The 2024 Republican frontrunner has once again promised against the creation of a CBDC “to protect Americans from government tyranny.”But would introducing
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