It has been just revealed the fact that the former SEC official reveals there are massive warnings about CBDCs that have to be taken into consideration.
Privacy concerns are now addressed, and we suggest that you take a look below in order to learn more details about this.
Privacy concerns about CBDCs
According to John Reed Stark, a former SEC official, the idea of a central bank digital currency (CBDC) is the most ridiculous financial concept in the history of monetary policy.
He argues that this currency is unnecessary since there are already reliable digital currencies that are regulated by government authorities and US-registered financial institutions. Therefore, the CBDC does not address any existing problems.
He says what the digital dollar would actually do is give rise to policy issues.
“The risks of a CBDC remain myriad and raise a variety of important policy questions, including how a CIBC might affect financial-sector market structure, the cost and availability of credit, the safety and stability of the financial system and the efficacy of monetary policy.”
According to Stark, the creation of a CBDC will also unleash various privacy and security concerns, akin to opening a Pandora’s box.
“Not only does a CBDC create a multitude of unnecessary risks relating to global financial systemic stability, but a CBDC also opens up a Pandora’s box of global financial privacy problems, conflicts and cybersecurity concerns.”
Stark has expressed his opinion that the expenses and difficulties associated with a CBDC outweigh its benefits. He also endorses a proposed law that aims to prevent the Federal Reserve from establishing a direct-to-consumer CBDC.
Senator Ted Cruz, the bill’s sponsor, argues that the digital dollar could be utilized by the government as a tool for financial surveillance.
Check out the original article in order to learn more about the state of CBDCs.
