The founder of Cardano said that he would never support a state-owned digital currency that violates the privacy of its owner.
ADA creator Charles Hoskinson believes that government digital currency (CBDC) is “the most dangerous innovation we have ever seen in monetary policy”:
“CBDC is not a cryptocurrency. Central Bank digital currencies can work on crypto rails and have the same functionality, but I will never support them in my life. It is a financial system where we transfer full control, unlimited monopoly and economic access to all our financial autonomy – the state.
Hoskinson used the example of two factions fighting to demonstrate the threat posed by the government’s digital currency.
“Suppose there is a civil war going on in the country between two ethnic groups. And the majority party that supports the government and oppresses the ethnic minority that controls the CBDC can block all the money of their opponents, ”the founder of Cardano believes.
Hoskinson warned that a permanent record of the government’s digital currency transactions could destroy a user’s privacy and expose him to censorship and harassment if he ever purchased goods that were not approved by the government.
Recently, analysts from the American research center Bitcoin Policy called on the US authorities to abandon the development of the state cryptocurrency in favor of using stablecoins and bitcoin. Last month, U.S. Federal Reserve Board member Christopher Waller said he did not share the general euphoria about CBDCs and believed that private stablecoins could better serve as a digital currency. This month, the U.S. House of Representatives Financial Services Committee, wary of the growing influence of the digital yuan, voted to develop an American digital dollar.
Source: Bits
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