- BIP releases a report stating why the U.S should not adopt CBDC.
- “As the world goes the way of China in the 21st century, the U.S .should stand for something different” states the report.
- Bitcoin, is the perfect solution as it is private, uncensorable, and free, states the report.
Citing the many issues that could arise should the U.S. create a Central Bank Digital Currency (CBDC), the Bitcoin Policy Institute (BPI) released a report on why the U.S. should refrain from adopting CBDC.
The report titled “Why the U.S. Should Reject Central Bank Digital Currencies” explores how the 21st century could be called “The Chinese Century” referring to the authoritarian use of China’s CBDC and its hegemony in military and economics, etc.
Focusing on the Chinese century, the report states:
As the world goes the way of China in the 21st century, the United States should stand for something different: it should stand for freedom. For this reason, the United States should reject central bank digital currencies.
With the rising number of countries joining the bandwagon to adopt their own version of CBDC, it is evident that governments are seeking more than just holding authority over legacy finance, states the report.
Texas Bitcoin Foundation executive director, Natalie Smolenski, Ph.D., argued on Twitter that CBDC would strip the public of financial control, privacy, and freedom.
#CBDCs don’t solve any problem.
They do extend state control to the last remaining free areas of individual economic life.
My latest white paper for the #Bitcoin Policy Institute. ⬇️ https://t.co/PS4rOlvcOw
— Natalie Smolenski (@NSmolenski) September 27, 2022
Additionally, the BPI report focuses on the opportunity cost of digital currency if the U.S. government were to refrain from adopting CBDC and proposes a solution to it.
It takes into consideration the low transaction fee and the instant cross-border transactions that could be missed without digital currencies and suggests bitcoin as the perfect solution. The report further states that even if there were to be an alternative to digital currencies, then it must be private, uncensorable, and free.
Referring to the digital currency traits mentioned above, the report states:
These are characteristics of bitcoin: a global cryptocurrency issued by a protocol rather than by a bank.
The report ends with a call to the U.S. to take the path of freedom and privacy and not to centralize power in a system that could arguably breed future abuse.
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