Why Are Free Market Thinkers So Fearful of CBDCs?

by Radhika Pawar creative content writer

We can agree to the sheer fact that any discussion touching on money would be much more useful if the participants actually knew what money is in the first place. Surprisingly, many don’t. Evidence supporting the precious claim is all the hysteria among elite thinkers regarding central banks and the rollout of digital currencies.

 

But there is more to it than meets the eye? We will not be wrong to say that money is just an agreement about value that those with actual goods and services on offer accept in return for what they have to offer. And since producers want to get equal to what they bring to market, they don’t just accept any currency.

 

For this reason, the deep in thought are wasting their hysteria on CBDCs. These are merely monetary creations of an arm of government. Keep in mind most governments carry with them a history going back millennia of devaluing the currencies they oversee.

 

That leaves many wondering why would central banks be any different when it comes to matters devaluation. And why are free market thinkers so fearful of CBDCs? Central banks are not just arms of governments that are not good on matters of devaluation. Moreover, they tend to be staffed with economists who simply believe near unanimously that currencies are a measure of value.

 

Could this be also a sign that if and when central banks roll out their own versions of private monies or crypto, they will be rolling out the unreliable kind. Those that are frequently devalued given the near unanimous belief among economists that currency devaluation is the ideal path to prosperity.

 

Among the top concerns raised by free-market thinkers are the possible privacy implications of CBDCs. In any digital currency system where transactions are always recorded on a centralized ledger, there is the worry that individual financial activities could become more vulnerable to scrutiny.

 

Imagine a scenario where every of your purchase is being tracked and monitored by the government. Even though this could aid in combating illegal activities, some argue that it also has the potential to infringe upon person privacy and lead to a less free and open society.

 

And there is also the sheer fact that the centralized control blues could stifle innovation, discourage entrepreneurship, and reduce the autonomy of individuals when it comes to their financial decisions. 

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Created on Oct 11th 2023 02:03. Viewed 53 times.

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