While some champion CBDCs as a financial revolution, many view them as a threat to privacy and freedom. Crypto.news spoke with experts to shed light on this complex debate.
Digital currencies backed by central banks, or CBDCs, could completely change how we use money. They could make payments quicker, less costly, and more effective both within countries and across borders. By cutting down on the expenses tied to making, sharing, and protecting physical cash, CBDCs could help economies work better and greatly improve how banking systems operate.
However, many experts believe that the advantages of such a system are eclipsed by potential misuse and societal consequences.
Are the benefits worth it?
Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, questioned the need for CBDCs, failing to identify the unique problem this innovation claims to solve.
“I keep asking anybody to explain to me what problem [a CBDC] is solving. I can send anybody in this room $5 using Venmo right now. So what is it that CBDC can do that Venmo can’t do?” he said at the Minnesota Transportation Conference and Expo in May 2023.
Financial inclusion is often cited as a major benefit of CBDCs. However, Nicholas Anthony, Policy Analyst at the Cato Institute’s Center for Monetary and Financial Alternatives, challenges this notion.
In his exclusive comment to crypto.news, he asserts,
“In the US, the Federal Deposit Insurance Corporation (FDIC) has found that Americans are often outside of the financial system because they do not
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Author: Ankish Jain
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