Would Jerome Powell have spoken on his own account by wanting kill bitcoin with CBDC ? Because indeed, a member of the board of governors of the United States Federal Reserve takes a different view of his bet on a central bank digital currency. Paradox!
Governor Michelle Bowman’s fears
Two weeks ago, a free think tank on policy research called the Cato Institute argued that CBDCs pose a threat to American privacy. A position shared by Michelle Bowman, a member of the Fed’s board of governors, according to The Daily Hodl.
” In reflecting on the implications of the CBDC and privacy, we must also consider the central role that money plays in our daily lives and the risk of a CBDC not only being a way out of the freedom enjoyed by Americans to choose how money and resources are used and invested, but also a potential impediment to that freedom “, she hammered in his speech delivered recently at Georgetown University (McDonough).
The fact that CBDCs would have privacy impacts worries not only Ms. Bowman, but also other American elected officials like the Republican Governor of Florida, Ron De Santis. The latter was moreover struck down by the economist Paul Krugman for his monetary conspiracy theory behind central bank digital currencies.
” No state government would have the right to prohibit the use of a CBDC created by the FED “, underlined Krugman.
Actions to take?
Governor Michelle Bowman demanded measures that would take into account the protection of the privacy of consumers and businesses in the event of a CBDC being launched from the United States. If the aim is to hinder tax evasion and money laundering, as much put in place a sufficiently transparent system.
Also, the choice ofappropriate technology and policy options will become a necessity in the event of the creation of a US CBDC by the FED.
” The privacy issue may be less difficult to address by resorting to wholesale use, in which a CBDC would only be used by traditional financial institutions to conduct a limited range of financial market transactions. As with many of these considerations, the purpose and intended function of a CBDC has a major impact on policy and design considerations. »
As for the ECB, its president Christine Lagarde believes that central banks would lose their usefulness without CBDCs. Never mind the impact on users’ privacy, Madam Chair?
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