Today an opinion piece in the Financial Times argues that the key challenges of a central bank digital currency (CBDC) is freedom and security. It’s written by economist Tony Yates who spent 17 years working at the Bank of England and another 24 at BNP Paribas. We’d complement Yates’s points with the need for control or self-determination, which means self custody of any digital currency.
His short piece states, “having an organ of the state, the central bank, potentially having access to information about every transaction within its borders and the ability to pry into every detail of people’s financial lives is the stuff of dystopian nightmares.”
We’d agree, but most Western central banks recognize that to encourage the adoption of a CBDC, they have to limit central bank access to personal transactions. That’s a good thing, but who knows how that will evolve if a CBDC gets traction.
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