Fugitive consultant to the US National Security Agency and now human rights activist Edward Snowden called “the newest danger that looms over society» cryptocurrencies issued by central banks, also known as Central Bank Digital Currency (CBDC). In his opinion, they put the state at the center of any transaction.
According to Snowden, this is contrary to all the principles and protocols adopted and developed for virtual money. Cryptocurrency was originally developed as a decentralized currency, free from the control of any authorities, designed to exclude financial institutions like banks from among intermediaries in the process of trade and investment.
Although cryptocurrencies have risen significantly in value this year, many people justifiably doubt them, since such assets are essentially unsecured and there is no government behind them. At the same time, some states began to consider the possibility of giving digital currencies the status of legal tender, primarily CBDCs, for which state guarantees of solvency are provided.
“CBDC is a perversion of cryptocurrency, or at least its fundamental principles and protocols – it is <..> a currency specially designed to strip you of the fundamental ownership of your money by putting the state at the center of every transaction.”Snowden said on Twitter.
A CBDC is a perversion of cryptocurrency, or at least the founding principles and protocols of it—a cryptofascist currency, expressly designed to deny you the basic ownership of your money by installing the State at the center of every transaction. https://t.co/720SYvqzZM
– Edward Snowden (@Snowden) October 9, 2021
In his Your Money and Your Life newsletter, he vigorously opposed central bank digital currencies, including criticizing the notion that the US CBDC would be the epitome of the digital dollar.
“Instead, I’ll tell you what CBDC is NOT – it is NOT, as Wikipedia might tell you, a digital dollar. After all, most of the dollars are already digital, not existing in the form of something lying in your wallet, they are just an entry in the bank’s database, requested by the user and drawn behind the glass of his phone. “– says Snowden.
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