DodoFinance Breaking News Made For You!
For years we’ve heard that central banks around the world are considering issuing their own digital version of the currency. The central bank is using so-called digital currencies, a tool that makes it possible to control almost the entire economy. However, in the US, there is currently little interest among central bankers.
“CBDC is worthless”
Federal Reserve Chairman Neel Kashkari of Minneapolis made it clear during a guest lecture at Columbia University that he does not see much in the way of a digital version of the dollar. “Central bank digital currencies are worthless unless you want to control, spy and tax your population like they do in China as a whole,” Kashkari said.
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Statements like this from a person like Kashkari make it clear that big business in the US is not thinking much of the digital dollar at the moment. If you think about it, it makes sense, since freedom is a core American value, the digital dollar is antithetical to that.
In countries like China, the government is more likely to come up with such initiatives because it fits perfectly with their worldview and how you should govern and lead people. An official investigation is underway in Europe, but it remains to be seen how serious the central bank is about it.
Bitcoin vs CBDC
Many see central bank digital money as a direct competitor to bitcoin, but in principle the two are unrelated. Bitcoin is digital money and CBDC is digital money, but that’s where the comparison really ends. Within the Bitcoin ecosystem, the same rules apply to everyone and no one has absolute authority, while it is the complete opposite with CBDC.
Bitcoin’s absolute scarcity is an asset that cannot be baked into a CBDC. In theory, central banks can promise never to print another digital euro or dollar again, but that’s only a promise against Bitcoin’s guarantee. When it comes to absolute scarcity, central banks don’t have to create new and own money, they can use Bitcoin.
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