CBDCs – But WHY? (Chris Principe) PlatoBlockchain Data Intelligence. Vertical Search. Ai.

CBDCs – But WHY? (Chris Principe)

CBDCs – But WHY?  

Central Bank Digital Currencies (CBDC) are being researched by central banks and governments of 87 countries and has already been launched in 11 countries.

The key question is: But WHY?

What follows is my view of the good, and the evil of CBDCs.

CBDCs: the GOOD

For you and for other people, the good things bought by CBDCs include ease, speed, and safety.

Everything – including savings, investments, debits, and credit lines – will be on your phone. There will be no need to use an ATM, or credit cards or have cash.

Your transactions will be instantaneous and will be done very safely. There will be no checks to clear or cash to deposit: all money movement will be digital. You can see your financial life accurately, anytime, and anywhere.

Your protection will be complete. You will have no fear about carrying cash, no risk of identity theft, nor of loss of your credit/debit card numbers. We will be free of the loss of money due to theft. Banks will monitor digital transaction trails. Life
will be tougher for criminals.

Governments are about power, so it is easy to understand the appeal of CBDCs.

No longer will the governments have the huge expense of producing bank notes and coinage. There will be no cost associated with the secure movement and storage of money. The art of counterfeiting and break-ins to steal, will become ancient history. Lawbreakers
will lose access to using cash and money laundering will no longer be needed.

Governments will have greater oversight. They will be able to require banks to reveal all transactional information on customers beyond what is done today. Taxes, personal and corporate, will become quarterly direct debits and income tax evasion eliminated.
With the biggest reduction of crime in history, occupancy of many jails will be reduced. This move to CBDCs will bring a flood of funds to every country’s treasury.

Bankers, I believe, are eager for CBDCs. There will be huge cost savings, smaller staffing, and a reduction in losses from crime and fraud. There will no longer be the need for the banks to be the distributors of physical money. Bricks and mortar banks will
be out, no retail floor needed. Centers with computers will be (to a greater extent than today) in. Customer service will be handled – almost entirely – remotely.

Banks may offer safety deposit boxes: they will not need vaults. Even the smallest transaction will pass through the banks digitally – providing the opportunity for fees and indirect income.

This will make reporting to the government’s agencies quicker and simpler. Customers will not have any alternative to dealing with banks.

CBDCs: the EVIL

While all the benefits for people, governments, and banks sound good for each group. The overall balance of benefits favors governments and banks. Yes, they will spin CBDCs to people as bringing a new and wonderful world.

The truth is different. Many of us will see crypto as an alternative and move towards greater usage. If cryptos are the solution to bypassing CBDCs, then expect to see the governments outlawing cryptos.

Worse, banks could put a hold or freeze or close the accounts of those suspected of using cryptos. Governments and banks want to increase their dominance over financial transactions. All of this would be done – ostensibly – with our best interests and our
protection in mind.

In the end, you will have to make a tough choice. On one hand, you can accept that your daily financial life is over unless you use CBDCs. Alternatively, you can decide to operate entirely in the crypto world. The challenge with the latter is that a lot
of shops and other sellers of goods and services may not accept payment in cryptos if that risks their losing their bank accounts.

CBDCs have the potential to change so much of our lives and may even change the definition of who is a free person. CBDCs enable governments to control our financial lives through the banks. Governments could disallow you the purchase of travel, or the buying
of certain goods or services, or the dealings with particular merchants. It may be that no laws have been broken, but merely that you have displeased the government.

CBDCs give governments and banks the ability to centralize power once again – very rapidly and totally. They will control people like never before in history. Financial slavery will be the new order. What’s your WHY?

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