According to a recent analysis from the Cato Institute assessment report published on Tuesday, Central Bank Digital Currencies are a foundational threat to America’s economic systems.
Central bank digital currencies (CBDCs) pose a foundational threat to America’s economic systems with absolutely no upsides, according to a recent analysis from the Cato Institute, which stressed that a U.S. CBDC will threaten citizens’ “core freedoms” from financial privacy to personal liberty.
Even though there are no valid reasons for the U.S. government to issue a CBDC when “the costs are so high and the benefits are so low,” significant efforts are being made by government officials and central bankers to launch the digital currency “in a bid to solidify government control over payments systems,” said the institute’s assessment report published Tuesday.
“As entrenched as this effort may already be, a U.S. CBDC would ultimately usurp the private sector and endanger Americans’ core freedoms.
“Therefore, it should have no place in the American economy. Congress should explicitly prohibit the Federal Reserve and the Department of the Treasury from issuing a CBDC in any form.”
While the Federal Reserve has not made any definitive plans or fixed a timeline regarding the launch of a CBDC, the agency has not concealed its enthusiasm for the project. Purported features like “safer” and “faster” are heavily touted, whereas focus on cons are rather limited.
The Biden administration has also thrown its support behind the CBDC project, releasing a paper last September analyzing the possibilities of introducing a digital dollar.
“If the United States pursued a CBDC, there could be many possible benefits, such as facilitating efficient and low-cost transactions, fostering greater access to the financial system, boosting economic growth, and supporting the continued centrality of the United States within the international financial system,” said the White House Office of Science and Technology Policy detailing the technical framework possibilities for a U.S. CBDC.
According to experts, the Federal government is using the Silicon Valley banking crisis to usher in central bank digital currency.
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