Are Central Bank Digital Currencies Dangerous?

Central bank digital currencies pose a significant threat to financial privacy, enabling unprecedented surveillance over individuals' financial activities.

Direct issuance of digital currency could bypass traditional monetary policy mechanisms, potentially leading to uncontrolled inflationary pressures.

CBDCs may facilitate full monetary financing of government spending, risking elevated inflation and the erosion of the private sector.

Claims of efficiency and enhanced policy transmission through CBDCs may mask a desire for increased government intervention and currency devaluation.

Rather than monopolizing currency issuance, central banks should prioritize defending the reserve status and purchasing power of their currencies amidst growing cryptocurrency competition.

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