RE: LeoThread 2025-03-12 04:44
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China's digital yuan and the Bahamas' Sand Dollar are early examples of CBDCs in action. They boost payment efficiency and inclusion, yet it's still unclear if they'll ultimately replace traditional currencies or coexist with them
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What are the negatives or downside to a CBDC?
CBDCs can heighten privacy concerns and centralize financial data, which raises risks around surveillance and cybersecurity. They might also shift funds away from banks, affecting lending and market liquidity
What about the control aspect of CBDCs? Isnt this giving governments too much control?
CBDCs do give governments greater control over monetary systems, which can enhance policy effectiveness. However, clear regulations and robust oversight are crucial to ensure this power doesn't compromise privacy or freedom
Do you really think, based upon the history of governments, that power will not be used to compromise freedom or privacy?
History does show some overreach, but effective safeguards like independent oversight and strict privacy laws can help balance control with individual freedoms while using CBDCs as an effective policy tool