{"id":561647,"date":"2023-03-10T00:09:25","date_gmt":"2023-03-09T21:09:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cbdcs-threaten-our-future-so-its-time-to-take-a-stand\/"},"modified":"2023-03-10T00:09:25","modified_gmt":"2023-03-09T21:09:25","slug":"cbdcs-threaten-our-future-so-its-time-to-take-a-stand","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cbdcs-threaten-our-future-so-its-time-to-take-a-stand\/","title":{"rendered":"# CBDCs threaten our future, so it\u2019s time to take a stand"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27d24abf842\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27d24abf842\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cbdcs-threaten-our-future-so-its-time-to-take-a-stand\/#%E2%80%9D_CBDCs_threaten_our_future_so_its_time_to_take_a_stand_%E2%80%9C\" >&#8221; CBDCs threaten our future, so it\u2019s time to take a stand &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CBDCs_threaten_our_future_so_its_time_to_take_a_stand_%E2%80%9C\"><\/span>&#8221; CBDCs threaten our future, so it\u2019s time to take a stand &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvNDhlZWE3OGEtZTVlOS00NWI4LWEzYjItMzRiYzVlZjk2NTgzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>If the development of blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> was a financial revolution, central bank digital currencies (CBDCs) are the counter-revolution. Their development has intensified in 2023 across the globe, and it\u2019s now more important than ever for the world to know what could lay behind the acronym.<\/p>\n<p>While there are some who think central banks can be trusted to proceed, the facts stand against them. This technology would give central banks unprecedented control, could pose serious security risks and is also entirely unnecessary. <\/p>\n<p>If you understand blockchain, you also understand the privacy dangers inherent in government-issued digital currencies. Every detail of every transaction would be available to state regulators, such as tax authorities. In the United Kingdom\u2019s case, the tax agency would not require any additional legal powers to examine all the details of every CBDC transaction.<\/p>\n<p>Some might say that these powers wouldn\u2019t be used. However, these investigatory powers don\u2019t just exist \u2014 they are used and abused. Take the Regulation of Investigatory Powers Act, introduced in the U.K. to deal with threats from terrorism. Before long, local councils were using the new powers to spy on people walking dogs, feeding pigeons and dumping waste.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>UK think tank launches a crusade against \u2018surveillance\u2019 CBDCs<\/em><\/strong><\/p>\n<p>It\u2019s also a big assumption that state regulators will be able to keep CBDC information confidential. In the U.K., state agencies too often lose data \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thesmsworks.co.uk\/blog\/ico-fines-analysis\/\">accounting<\/a> for 54% of all data breach fines. Not that long ago, HM Revenue &amp; Customs managed to lose the records of 25 million taxpayers.<\/p>\n<p>But the threat from hackers is also significant. The centrally collected data will be a massive honeypot for hackers and the hostile states that back them.<\/p>\n<p>As the director of Britain\u2019s cyber intelligence agency, the Government Communications Headquarters, commented, a CBDC \u201cgives a hostile state the ability to surveil transactions. It gives them the ability [&#8230;] to be able to exercise control over what is conducted on those digital currencies.\u201d Acquiring CBDC data would be the equivalent of hitting the jackpot for hostile states. We may also assume that hacking won\u2019t be their only <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach. For example, a recent congressional inquiry revealed that Chinese agents were trying to infiltrate the United States Federal Reserve.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">An unelected bureaucrat stating a willingness to trade your right to financial privacy for a surveillance-style U.S. CBDC <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/TKqpTtCNWQ\">https:\/\/t.co\/TKqpTtCNWQ<\/a><\/p>\n<p>\u2014 Tom Emmer (@GOPMajorityWhip) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/GOPMajorityWhip\/status\/1631719472976343040?ref_src=twsrc%5Etfw\">March 3, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>A CBDC could also be programmed to achieve various government objectives. Some central bankers want to use CBDCs to conduct monetary policy, imposing negative interest rates by taking funds out of CBDC accounts. Taxes could be levied at the point of transaction, and purchases of certain items could be prevented or restricted to support rationing. The possibilities for increased government control are endless. <\/p>\n<p>A key question, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/committees.parliament.uk\/committee\/175\/economic-affairs-committee\/news\/160221\/central-bank-digital-currencies-a-solution-in-search-of-a-problem-report-published\/\">asked<\/a> by the House of Lords Economic Affairs Committee in a fascinating report on CBDCs, is: <em>What problem are they actually trying to solve?<\/em><\/p>\n<p>Former Bank of England Governor Mervyn King <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/hansard.parliament.uk\/lords\/2023-02-02\/debates\/75D69175-C242-45B8-B5F8-393D171D9329\/CentralBankDigitalCurrencies(EconomicAffairsCommitteeReport)\">pointed out<\/a> in the House of Lords earlier this month: \u201cCBDCs are about ways of making payments; they are not a new currency. [&#8230;] What are the problems in our payments system to which a CBDC might be the answer?\u201d He concluded, \u201cThere are no problems to which a CBDC is the only, or even the most obvious, answer. Our payments system is more efficient than those in most other countries.\u201d<\/p>\n<p>Lord King exposed the hollowness of the whole drive to create CBDCs. They are little more than a power grab by central banks, with risks hugely outweighing the benefits, insofar as these exist at all.<\/p>\n<p>Proponents of CBDCs argue that they would improve payment system efficiency, promote financial inclusion, and make cross-border transactions easier and cheaper. What they won\u2019t tell you is that all of these features are already offered to consumers today in the form of fiat-backed stablecoins issued by private companies. Examples such as Circle\u2019s Euro Coin (EUROC) and Poundtoken\u2019s GBPT provide many of the exact same use cases as both wholesale and retail CBDCs for both the eurozone and the United Kingdom.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>CBDCs require governments to put a special focus on security<\/em><\/strong><\/p>\n<p>Make no mistake: Central banks know this. Private stablecoins have already hit the mainstream in parts of the world such as Latin America, where local currency devaluation has led to more than a third of people making a purchase with stablecoins. International Monetary Fund economist Eswar Prasad even predicted last year that in regions facing similar issues, \u201cnational currencies issued by their central banks [&#8230;] could be displaced by stablecoins.\u201d <\/p>\n<p>It should be no surprise that the recent CBDC development push around the world has coincided with unprecedented stablecoin scrutiny and legal action from government regulators.<\/p>\n<p>What can we do? Above all, we need to spread a greater understanding of the issues, both in the policy community and the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> public. Let\u2019s bring the facts out into the open. The best way to do this is through an international awareness campaign that occurs before CBDCs are entrenched. This matter is too important to be decided only by those with vested interests, such as central banks.<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Conrad Young<\/strong> is a co-founder of Athena Labs, a global Web3 communications agency. He serves as digital assets adviser to U.K. think tank the Tax Reform Council and its activism arm, Cut My Tax, and has worked at the intersection of blockchain and public policy throughout his career. He graduated from the University of Bristol in 2017.<\/div>\n<\/div>\n<p class=\"post-content__disclaimer\"><em>This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cbdcs-threaten-our-future-so-it-s-time-to-take-a-stand\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CBDCs threaten our future, so it\u2019s time to take a stand &#8220; If the development of blockchain technology was a financial revolution, central bank digital currencies (CBDCs) are the counter-revolution. Their development has intensified in 2023 across the globe, and it\u2019s now more important than ever for the world to know what could lay&#8230;<\/p>\n","protected":false},"author":1,"featured_media":561648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/48eea78a-e5e9-45b8-a3b2-34bc5ef96583.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,74863,75493,74892,88784,74355,71511,4966],"class_list":["post-561647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-cryptocurrencies","tag-stablecoin","tag-tokens","tag-uk-government","tag-adoption","tag-government","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=561647"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561647\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/561648"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=561647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=561647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=561647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}