The plans for introduction of the central bank digital currencies (CBDCs) have been around for some time now. Even as efforts are on in various central banks including the Fed, influential leaders continue to voice out against them.
Similar to the cryptocurrencies, the CBDCs are digital tokens with their value pegged to fiat currencies. However, these tokens are centralized and monitored by governments, nullifying the very idea of decentralized cryptocurrencies.
Criticism Against CBDCs
Bryan Solstin, a U.S. senate candidate from Washington is the latest of many who voiced out publicly against the implementation of CBDCs. In fact, Solstin declared his candidacy on the grounds of promising to make Bitcoin legal tender of the U.S.. He believes Bitcoin is the Great Reset for transitioning to a more equitable future.
Terming the central bank offered tokens as slave money Solstin said the Fed’s CBDCs need to be banned permanently. On his official website, the senate candidate states:
“As Senator and privacy advocate, I will fight every CBDC effort. I will break relations with every country who implements a CBDC.”
Pierre Poilievre, a candidate for Canada’s conservative party leadership, is also among those who advocated against a CBDC from the Bank of Canada. During a debate on Wednesday, he said he would ban a Fed CBDC and give people back control of their money from bankers and politicians.
Fed CBDC Push
On the other side, the U.S. Fed continues to study the ups and downs of the CBDCs in the country. Earlier this year, the Fed released a white paper on the CBDCs. However, it was unclear if it would proceed for a CBDC without clear support from the lawmakers.
Meanwhile, countries like Singapore and Cambodia have already announced they are exploring CBDCs as a tool to improve payments efficiency. Also, Israel has earlier expressed its interest in CBDCs.