Opinion by: Simon Cain, contributing to Bitcoin Policy UK
Most Jurisdictions The whole world is researching, developing or implementing the retail of the Central Bank Digital Currencies (CBDC). If you see them as harmless transfer-to-time digital money-paper updates, look again. CBDCs potentially mean finance serfdom through a financial panopticon where authorities strongly control each transaction.
If you think it’s paranoid, just consider the words of Augustin Carsens, head of the bank for international arrangements -the central bank for central banks in the world. Mourning the current inability of the authorities to control cash transactions, he said that in a CBDC, a “Central Bank will have full control over the policies and regulations that determine the use … we will also have technology to implement already .. making a huge difference with respect to what cash is. “
How can “full control” work
CBDCs can be programmed so you can only buy a few things from some people, at a few hours, within specific dates, or at only approved locations. Their effectiveness may depend on compliance with all government policies (climate, medical, social, and tax). They can be subject to maximum or minimum handling limits. They can be programmed to discourage saving and encourage ‘investment’ in approved shares and bonds (such as the new EU ‘Siu’ initiative or in accordance with the UK financial lobbying and ‘research’).
Politicians and middle banks may say that they do not intend to implement any controls, but such guarantees are of no value. In Quote The UK -economic Committee Committee, “While the Governor of the Bank of England told the committee that he did not see a CBDC as a way to implement the financial policy, the committee noted that his successors may not be in agreement”.
Freedom in the transact is primarily in freedom itself. When you are no longer able to choose what you do with your money, you are on the way to the finance serfdom. How can you defend yourself?
Bitcoin repair is more than just financial serfdom
Bitcoin fights financial finance. Because it is the most decentralized and censorship-resistant currency, the Bitcoin held in self-custody cannot freeze or confiscate, and its transactions are uncontrollable. This is not theoretical. This has been proven in countless cases of financial repression around the world, whether in Russia and Ukraine, Afghanistan and Cuba, or worldwide organizations from Wikileaks in 2011 to the Alliance of the Humanitarian Alliance in 2025.
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But financial serfdom is not the only risk to CBDCs. The UK -economic committee Points That is “a centralized ledger of the CBDC, which will be a critical piece of national infrastructure, can be the target for attacking from the state of the state and non-state actor.” Governments and public creatures have always been hacked and dripping with data, which they raise by constantly hacking each other. Having your access to money that is entirely dependent on their ability is a terrible idea.
Bitcoin is fighting the failure at the financial institution. And again, it’s not theoretical – it’s proven too. When banks fail, or their systems go down, Bitcoin always stays and runs as it is the most reliable computer network in the world. For a decade, Bitcoin has not been down for at least a fraction of a second.
Bitcoin was ultra-decentralized, and had a zero successful hack of Bitcoin Ledger itself at the time, despite its value in trillion dollars. Public or private, money or otherwise, no other large network can approach reliability and resistance to physical, virtual or political attacks.
Anywhere is immune from digital fiat
CBDCs seem to be coming to major western economies. The European Central Bank is set to complete preparations for this year’s ‘digital euro’ CBDC. Americans can now have a president order “Prohibition … a CBDC within the jurisdiction of the United States,” but Stablecoins look set to be government CBDCs identified in decentralized private bank Clothesable to perform the same operations.
The current US administration’s enthusiasm for Stablecoins has noted that the BIS’s favored CBDC is in line, “a hybrid model that allows the division of labor between the central bank and private mediators.” For a peek into the potential Stablecoin-As-CBDC world, just look at what is embedded in the US dollar system for the world’s leading stablecoin. “We follow US laws and regulations when it comes to freezing,” said Paolo Ardoino, Tether’s CEO, who also does not operate within the United States. “We board the FBI and US Secret Services; we work in the Department of Justice almost daily and the treasury.”
Whether it’s called a CBDC or not, you are likely to be subject to some form of digital fiat. But, at the moment, nothing will prevent you from accessing some self-suvereign ‘out-of-system’ currency. As without peer-to-peer digital cash permission, Bitcoin can defend the financial serfdom and protect from the failures of financial institutions. And, in its own sly roundabout way, it’s the best and only truly decentralized tool for doing so.
Opinion by: Simon Cain, contributing to Bitcoin Policy UK.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
