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Central bank digital currencies (CBDCs) are often touted as the inevitable future of finance. However, despite the promise of modernization and increased efficiency, these currencies raise serious concerns about their true utility and impact on individual freedom.
The broken promise of transparency
In general, one of the main benefits of a CBDC is transparency. In theory, making the source code of a CBDC project available for public inspection should increase public trust (similar to cryptocurrencies). However, experience has shown that transparency alone is insufficient to ensure ethics and fairness in the financial system.
In Brazil, for example, oversight mechanisms built into CBDC terms and conditions were rapidly uncovered, revealing potential for abuse of power. Despite the openness of the code, the inherent centralization of CBDCs places control firmly in the hands of authorities, leaving little room for real citizen intervention. This highlights the connection between Bitcoin and several other cryptocurrencies.
The centralized nature of CBDCs is a major concern. Unlike decentralized cryptocurrencies like Bitcoin, where users can directly control the network and influence its development, CBDCs remain under the strict control of central banks.
Even with open source code, you can't really change or fork the network if users don't agree with the direction.
This is exemplified by the case of Norway, where despite nascent open projects there are no guarantees that future-proof openness. Power therefore remains centralized, and the promise of democratic participation quickly crumbles when faced with the reality of unilateral institutional decisions.
Transparency without electricity in CBDC
The final nail in the coffin of CBDC effectiveness in terms of transparency is the illusion of control it creates.
For example, in the United States, the Hamilton Project was certainly an open collaboration, but there is no indication that its results will influence Federal Reserve policy in the long term.
Without the authority to act on the information disclosed, transparency becomes superficial. Citizens can notice deficiencies and problems, but without real means of pressure, this openness only exposes deficiencies without providing solutions.
Although CBDCs represent an important technological advance, their implementation raises serious questions about whether they can truly serve the public interest.
Their centralized nature and the inherent limitations of transparency as a tool of democratic control call into question their role in societies that value individual freedom and citizen participation.
For digital currencies to meet people's needs, they need to offer more than just transparency. We must ensure practical action and control capabilities in the hands of all citizens. Without this ability, CBDCs risk becoming another tool of centralized power, far removed from the ideals of freedom and transparency they claim to embody. Meanwhile, North Korea is considering accepting BRICS.
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The appeal of Bitcoin in 2017, creating important documents. This essay aims to revitalize Avance, which is the forefront of transactions and the center of virtual currency. En tant que redacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
