WASHINGTON, DC – As the Federal Reserve debates adopting a U.S. Central Bank Digital Currency (CBDC), Club for Growth Foundation released a policy brief warning against the many dangers of a central government-run CBDC.
Bitcoin Magazine wrote an exclusive report on the policy brief, which can be found here.
Check out the full policy brief here.
Excerpts:
“CBDCs seem to be a solution in search of a problem. There is no obvious market failure that CBDCs correct. ”
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“Not only does a CBDC fail to deliver the benefits claimed by its advocates, but the introduction of a CBDC violates the principles of limited government and the free market. A CBDC would put the Federal Reserve in direct competition with private, commercial banks for depositors.”
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“While it is possible to imagine a CBDC designed to provide some level of privacy and anonymity, it is also possible to imagine dystopian scenarios in which the digitalization of nearly every part of one’s life is accessible to the central bank and/ or the government. Digital identification could be tied to digital medical records, loan balances, one’s internet-connected car, and a CBDC account.”
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“The CBDC could be used as a tool to punish people with particular political views by freezing their accounts.”