The Point: The Bank of International Settlements and European Central Bank issued a report warning of the negative effects of introducing “central bank digital currencies” (CBDCs).
What does the report say?
- The report warns that CBDCs may have an “adverse” effects on the existing financial system including interest rates, exchange rates, asset prices, intermediation structure, financial supervision, and more.
- IBS and ECB execs also stated that Bitcoin (and other cryptocurrencies) are “not the answer to the cashless economy.”
- The report also advocates banks and governing authorities to monitor digital currencies outside of centralized control.
The Takeaway: It’s clear that central banking officials find decentralized digital currencies to be a threat to the existing financial order, and it is: that’s the main point. Countering the current financial system and escaping its mechanisms are the primary reasons why they were developed in the first place. The report merely confirms their official stance against digital currencies and their efforts to exclude it (while monitoring it) from within their financial jurisdictions, the latter point being exactly what the cypherpunk culture originally wanted, but with a greater critical mass of digital currency users.
To view the original long-form source, click here.
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