Experts have assessed the statement of the former CIA officer Edward Snowden, in which he criticized the digital currencies of central banks and called them "the latest danger that looms over society."
Former CIA officer Edward Snowden called central bank digital currencies (CBDCs) "the latest threat looming over society." According to Snowden, such digital currencies pervert the very nature of cryptocurrencies, as they deprive users of ownership of their money. Also, the ex-CIA officer called the CBDC "crypto-fascist currency". Topplabs.org experts have explained why Snowden has been harsh about central bank digital currencies.
The only reason why regulators in many countries began to develop their own controlled digital currencies is an attempt to have time to occupy a free niche in the impending financial revolution, says Nikita Zuborev, senior analyst at Bestchange.ru. According to him, central banks are also trying to parasitize on the positive image of cryptocurrencies.
“CBDC and any other manifestation of centralized digital currencies (for example, Ripple) distort the very idea of cryptocurrencies – complete economic freedom,” the analyst said.
According to Zuborev, from a technological point of view, there is no need for digital currencies of central banks, since they perform the function of non-cash bank payments. But, the state structures of most countries understand that they must create an "alternative" to bitcoin, the analyst added.
Designed for control
Digital currencies of central banks can and will be used to control citizens and their funds, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, technology is a powerful tool in the arsenal of any government, which they will certainly use when necessary.
The analyst explained that some countries are trying to restrict private cryptocurrencies as they compete with the CBDC. There is more trust in private cryptocurrencies than in state ones, since the emergence of digital assets is associated precisely with distrust of the centralized financial system, Karkhalev noted.
In the future, digital currencies of central banks will inevitably compete actively with private cryptocurrencies, Zuborev is sure. In his opinion, it is private cryptocurrencies that will be defeated in the war of digital assets, since states have much more opportunities and resources to limit them.
“In the future, in countries with their CBDCs, private cryptocurrencies will face the same separatist and marginal status as in 2009–2014,” the analyst predicted.
Zuborev described the issuance of digital currencies by central banks as an attempt to preserve the modern international monetary system.