Over the weekend, discussions of central bank digital currencies, or CBDCs, have been trending on social media as many believe the idea will result in increased financial oversight and a totalitarian monetary system. In a recent interview, Lynette Zang, Chief Market Analyst at ITM Trading, warned that CBDCs “will plunge the world into a complete surveillance economy that can be controlled directly by the central bank.”
“Convincing you to support a controlled CBDC has begun”
Over the past week, discussions about CBDCs have social media trend, and comments show that people are very skeptical of central bank cryptocurrency assets. Opposition came from well-known influencers and politicians around the world. Former congressman and 2020 US presidential candidate Tulsi Gabbard recently criticized the idea in the United States.
“(The) Biden (administration) aims to implement a central bank digital currency (CBDC) to create a cashless society, allowing them to track everything we buy (and) control our money,” Gabbard opined. “(The) government’s ‘Fednow’ system is necessary (as) the first step to realizing their dream of a cashless society. This must be stopped early on, otherwise it will be too late,” she added.
Spotted in London by a member of the team.
We say no #CBDC because we want our financial privacy. pic.twitter.com/nn8nOKq0ya
– Corner Office (@coinbureau) April 16, 2023
The US central bank’s Fednow program has been the subject of much debate lately, and just recently the Federal Reserve claimed that the project is not a digital currency, CBDC, or cash replacement. Other discussions focused on the Bank for International Settlements (BIS) CBDC pilot project, Project Icebreaker. BIS recently published a video about the project, and people commented on the organization’s statements. “Convincing you to support a Central Bank-controlled digital currency has begun,” tweeted podcaster James Miller.
Why CBDCs are a totalitarian dream pic.twitter.com/KsbZ6cFxLF
— Jon Najarian (@jonnajarian) April 16, 2023
Natalie Smolenski, senior researcher at the nonpartisan nonprofit organization The Bitcoin Policy Institute, also criticized the video for Project Icebreaker. “Literally, all of the benefits of this CBDC interoperability project (BIS ‘Project Icebreaker’) can already be realized by the Bitcoin Lightning Network,” Smolenski said. writing. “CBDCs are completely useless. There is no problem they solve. They are simply reinserting central banks into functions where they have already been rendered obsolete. According to the Atlantic Council CBDC tracking114 countries are working on CBDCs and 11 countries have fully launched implementations.
Your property and your privacy depend on the total rejection of all CBDC schemes.
— Libertarian Party (@LPNational) April 7, 2023
CBDCs will usher in a ‘complete surveillance economy’, says market analyst Lynette Zang
Lynette Zang, chief market analyst at ITM Trading, warned of the dangers of CBDCs in a recent video with Michelle Makori, the main anchor of Kitco News. This isn’t the first time Zang has criticized CBDCs; she spoke to Makori about the subject in a video posted last February. In his final chat, Zang spoke about the collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank and claimed the failures were “by design.” Zang believes a CBDC will usher in a totalitarian monetary system that will become the new normal for the economy.
YELLEN, US TREASURY SECRETARY: THERE ARE SIGNIFICANT PROS AND CONS TO A CBDC THAT NEED TO BE CAREFULLY CONSIDERED BEFORE MOVING, BUT IT MAY BE SOMETHING THAT IS IN THE FUTURE FOR AMERICANS.
— Latest Market News (@financialjuice) April 15, 2023
“They need a big enough crisis for people to accept this next iteration, the CBDCs,” Zang explained to Makori in his last interview. “It also takes the world into a full surveillance economy that can be controlled directly by the central bank, if all your wealth is held inside the system.” Zang believes that with CBDCs, negative rates will be imposed on people’s bank accounts and individuals’ capital will be at risk. “Central bank digital currencies are really about control, and also about the ability to withdraw principal,” Zang said. “Negative rates are attacking your principal… When they come out with a CBDC, it doesn’t mean this crisis is over. This is just the next phase of it.
Not everyone opposes the concept of CBDCs, and in a recent op-ed, Keynesian economist Paul Krugman criticized Florida Governor Ron DeSantis’ recent opposition to a central bank digital currency. Krugman called the hostility resistance against “woke money” and claimed that DeSantis may be motivated by “general paranoia.” On Twitter, Krugman also opined that dissent towards CBDCs could be “tied to a broader push of monetary conspiracy theorist types” and claimed that the theories were a “right-wing thing for a while.”
What do you think of the rise of CBDCs and the potential for a cashless society? Do you agree with the criticisms made by some people? Share your opinions in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
