Around 90 countries around the world are looking into implementing their own digital central banks. China has already started to take this step, with trials being conducted in various regions.
Although it was thought that the US would not be considering such a move at all, recently the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology published research about a CBDC capable of processing 1.7 million transactions per minute.
On Tuesday, Emily Parker (executive director of Coindesk) spoke out on CNBC in an interview. She explained why it was important to differentiate the two assets and why she believes there is a need for private assets like crypto.
She stated that CBDCs as well as crypto are fundamentally different animals.
She said that CBDCs could be widely implemented, making it even more important to have a “people’s currency”. She points out that central banks could have complete control over citizens and turn their wallets off if they don’t like their politics, or any other reason.
Opinion
One would think that many people in the world would be concerned about governments having complete control over their money and how it is spent. The mainstream media has done an excellent job of shaming cryptocurrencies and extolling the benefits of CBDCs.
The history of fiat currency has been a disaster. Today, all fiat currencies have had their purchasing power taken out by banks allowing them to manage them. This policy has resulted in the huge spike in inflation.
It is clear that governments worry about losing control of money. This is an understandable response. They must be very afraid of having their sovereign currencies replaced in some way by private currency.
But if governments continue to leave monetary policies in the hands bankers with their own agendas, then the best for the people will be sacrificed in favor of the banks’ profits.
It is possible to see private currencies operating alongside fiat in the future. People who have bitcoin, or other virtual currencies, could act as a deterrent and stop banks from doing this.