According to a report from the Cato Institute, the central bank digital currency, or CBDC, will hijack the private sector and threaten privacy and core freedoms of citizens.
The US government is investigating the creation of a CBDC, which is essentially a cryptocurrency. This is a “digital dollar” that will be backed by the Federal Reserve, an analysis by the Cato Institute, a policy research agency based in Washington, D.C., found.showObvious dangers to the privacy of citizens and the free market.
CBDCs “should not have a place in the American economy” and “Congress should explicitly prohibit the Federal Reserve and the Treasury from issuing any form of CBDC.”
The main arguments against the development of government-issued CBDCs, according to the Cato Institute, include fears of monitoring and regulation, the instability of free markets, and cybersecurity.
It is currently unclear when the United States will issue a CBDC, although the Federal Reserve’s FedNow service is likely to launch soon. which is a government-run transaction portal It will be available online in July.
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