Founder of Cardano, Charles Hoskinson recently released shared a video, which basically matched with his stance towards how the usage of Central Bank Digital Currencies (CBDCs) is a poor idea in general.
Privacy and Control
CEO of IOHK and Founder of Cardano, Charles Hoskinson very recently shared a video on his twitter which linked to a podcast that was hosted by popular figure Joe Rogan, regarding the use of CBDCs and how they are not suitable to be used by governments around the world. As the overall interest in the use of CBDC’s by governments continue to exist, it has triggered may debates around how governments are looking to gain control and dodge privacy over people’s daily trading businesses.
Interest of Governments in CBDCs
Many governments around the globe have started to see that if they want CBDC’s to succeed ad become relevant among their people, it is important that the must keep up with the power and abilities of decentralized assets and their transaction efficiency and general rates. But the general idea about government-controlled currencies is one that has spread skepticism about how the government would deal with user privacy and overall control over the asset.
There are many theories stated that CBDCs are a type of trap that governments will spread to secure users, gaining control over their trade. Many think that governments are implementing CBDCs to solve issues such as, money laundering and terrorist funds, however the counter argument about privacy and control is one that cannot be ignored in any way.
Coming back to Charles, he also believes the same way regarding CBDCs. The video he shared on twitter included views from a guest named Maajid Nawaz who was invited to Joe Rogan’s podcast session. Activist Maajid Nawaz, mentioned about G7, that was formed by the 7 largest IMF economies around the world was showing interest in the development of a CBDC, because they thought that physical money will soon become rare.
Maajid stated that according to officials from the Bank of England, the CBDC being developed would function in such a way that would restrict the trade of certain items, practically controlling the trade. Maajid referred the CBDC to vouchers that are only functional when the government desires, a system that can be compared to the current situation of the Chinese government forcing its people to use their credit system.
Nawaz also mentioned that the people should be prepared for this because of the massive impact decentralized currencies, which are prone to make governments realizes that they are losing control of their own economy.