Cardano Charles Hoskinson Sees the CBDCs as a Threat Called it the “Single Most Dangerous Innovations”.
Charles Hoskinson, an American entrepreneur with a background in blockchain engineering who founded Input Output Global, Inc. (formerly IOHK), and the creator of Cardano blockchain platform, shared his thoughts about central bank digital currencies (CBDCs) in an interview with Cheeky Crypto on 21 September 2022.
Hoskinson isn’t a fan of central bank digital currency (CBDCs) and even sees them as threats.
The CBDCs is the Single-most Dangerous Innovation, Charles Hoskinson Says
As Hoskinson puts it, CBDCs are “the single-most dangerous innovation” that has ever occurred in monetary policy.
He said that CBDCS is not a crypto, “they can run on crypto rails and do these things, but I will never in my life support a system where we hand an unlimited monopoly to somebody at any moment to have total control over your entire financial autonomy and your economic access.”
Cited from The FED’s Websites, CBDCs are digital versions of central bank money that are widely available to everyone where “Central bank money” refers to money that is a liability of the central bank.
CBDCs Enable One Parties to Have Total Control Over The Whole Financial Autonomy
As an example of CBDCs, Hoskinson cited a situation where the company had implemented the scheme in one country and was in complete control of its financial autonomy.
“Just as an example of what could be done: Let’s just say there’s a country, and I’ll just say country, I won’t put a name on it. And there’s a civil war going on in that country between two ethnic groups, “ he said.
“So it’s entirely possible when you have a CBDC that the majority party — the one that runs the government that’s oppressing the other group — can just say, ‘You know what, we’re just going to shut off all the money of everybody who’s of this ethnic minority. Just going to turn it off.’ They wake up, their wallets are empty,” added him.
Cardano creators also note that a permanent record of CBDC transactions could threaten privacy and expose people to censorship and oppression if they ever bought anything the government deemed unsuitable.