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Central bank digital currency (CBDC) is the ultimate trojan horse for citizens around the world, according to Peter Goettler, president of the Cato institute.
Goettler, who has been president and CEO of libertarian thinking since 2015, said CBDC is a direct response to the rise of cryptocurrencies.
“Cryptocurrencies also provide the ability to transact outside of the traditional financial sector and with more privacy. In response to the popularity of these innovations, governments are pursuing the opposite: more centralization, oversight and control.”
Goettler, a former executive at Barclays, said the CBDC was unsuited to serving the public’s need for freedom and privacy, despite what the international banking cartel said. According to him, they were raised solely to increase the power of the state and its rulers.
“CBDC is being developed precisely because it gives the government more control and power. Threats to individual rights of this kind will naturally push people towards private solutions, while governments will inevitably work hard to thwart such alternatives because they undermine the increased government control and power that CBDCs create.
The former banker also said that CBDC apologists who said the new system would maintain a reasonable level of anonymity and privacy were wrong. He said the government would essentially lose all alleged CBDC benefits if anonymous transactions were allowed. The only way the CBDC could have any sort of privacy mechanism is if existing anti-money laundering (AML) laws were scrapped, which Goettler said was an unrealistic expectation.
“Some proponents still believe that CBDCs can be designed in such a way that privacy is protected, but this view is naïve because government officials will not be able to derive the expected benefits from CBDCs if they enable anonymous transactions. This view also ignores the fact that the benefits of CBDCs will not materialize if people have alternative payment options. Governments would not be able to program citizens’ spending, for example, if people could use cash instead of CBDCs.
It is also very hard to believe that governments would implement CBDCs with fewer requirements than they place private companies in the name of safety and security. The only way CBDCs can provide a privacy advantage over transacting over traditional mediums of exchange is if governments ditch their existing anti-money laundering (AML) frameworks. Strictly speaking, central bankers will not engage in anonymous transactions with members of the public, something the government has banned private financial institutions from.”
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