International Economy
Citizens will be denied freedom of choice and fulfillment of their desires
On the occasion of the launch of the digital euro, the digital dollar and the eventual creation of a global digital currency CDBC (Central Bank Digital Currency), Eswar Prasad, professor of economics at Cornell University, speaking at the World Economic Forum, said that with digital currency politicians will be able to decide what they will buy!
In short, they will be denied the freedom to choose and fulfill their desires, which is the principle of creating totalitarian societies and authoritarian regimes.
Specifically he said:
“You probably have one […] A darker world where the government decides to [CBDC] It can be used to buy some things but not others which he considers less desirable.”
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A final note I will make is that if you think about the benefits of digital money, there are huge potential profits.
But some people may see it as a darker world where the government decides that units of money in the central bank can be used to buy certain things but not others that it considers less desirable.
Technology can lead us to a better place. But it can also lead us to a very dark place.”.
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A central bank digital currency (CBDC) is a digital currency issued by a central bank rather than a commercial bank.
It is a central bank’s obligation and is expressed in the country’s currency, as is the case with banknotes and coins.
Rather than a new currency, a CBDC is a form of central bank electronic money that can be used by households and businesses to make payments.
A report from the Bank for International Settlements notes that although the term “central bank digital currency” is not well defined, Most people envision it as a new form of central bank money […] that differ from denominated funds balances in traditional reserve or settlement accounts’.
The current concept of digital currency for digital currencies differs from virtual currency and cryptocurrency in that a central bank digital currency is or will be issued by a country.
In 2023, the central banks of 114 countries representing 95% of global GDP are in various stages of evaluating the circulation of a national digital currency.
This included the European Central Bank, the United Kingdom and the United States.
The Chinese renminbi was the first digital currency issued by a major economy.
Five central banks have launched CBDCs: the Central Bank of the Bahamas (Sand Dollar), the Central Bank of the Eastern Caribbean (DCash), the Central Bank of Nigeria (e-Naira), the Bank of Jamaica (JamDex), the People’s Bank of China (digital renminbi) and the Reserve Bank of India (RMB). digital rupee).
The ECB/Eurozone is preparing to make a decision by the end of 2023, after a study phase from 2021 on the prospects for a digital euro.
A number of countries have issued or are considering issuing cryptocurrencies: these include Venezuela (the Petro) and the Marshall Islands (the Sovereign).
These cryptocurrencies are often seen as increasing a country’s independence from global financial systems, such as reducing dependence on foreign currency or avoiding international sanctions.
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