Bitcoin Policy Institute, a think tank in the United States, has called for the United States to reject central bank digital currencies (CBDCs) and switch to Bitcoin (BTC) and stablecoins.
The CBDCs Can Strip The Public of Financial Control
The Texas Bitcoin Foundation’s Natalie Smolenski and former Kraken growth leader Dan Held wrote a white paper shared on Tuesday that asserts that CBDCs would tighten financial controls, limit privacy and limit freedom for the public.
“#CBDCs don’t solve any problem. They do extend state control to the last remaining free areas of individual economic life. My latest white paper for the #Bitcoin Policy Institute,” tweeted Smolenski.
#CBDCs don’t solve any problem.
They do extend state control to the last remaining free areas of individual economic life.
— Natalie Smolenski (@NSmolenski) September 27, 2022
CBDCs, according to Smolenski and Held, would give governments direct access to all transactions conducted by individuals across the globe, adding that these could become available for “global perusal,” since government infrastructure is the target of constant and escalating cyberattacks.
The CBDCs Function Can be Solved with a Combination of Bitcoin and Stablecoin.
According to the authors, many of the functions CBDCs provide could be achieved using Bitcoin, privately-issued stablecoins, and even the dollar.
“For most people, a combination of physical cash, bitcoin, digital dollars and well collateralized stablecoins will cover virtually all monetary use cases.”
The argument Smolenski made is that Bitcoin and private stablecoins would make digital transactions instantaneous and inexpensive within and outside of the country. Meanwhile, digital dollars and stablecoins will still need to comply with Anti-Money Laundering and Know Your Customer laws by “the platforms that facilitate transacting with them.”
“The creation of CBDCs is, quite simply, unnecessary.”
Additionally, the paper argued that governments are often out of touch with technology, citing the Eastern Caribbean Central Bank’s CBDC, DCash, which went down earlier this year.