Central Bank Digital Currency (CBDC) is a digital form of money issued by a country’s central bank.
It’s like a digital version of the physical cash we use, but it exists only in a digital format and is programmable, making it dangerous.
One danger of CBDC is the increased surveillance and invasion of privacy it will bring. Since CBDC is entirely digital, every transaction you make can be easily tracked and monitored by the central bank. This means that your financial activities will be closely watched.
For example, let’s say you purchase a product or service that the government considers undesirable or politically sensitive. With CBDC, the central bank will easily identify this transaction, potentially leading to consequences like blocking your monetary access.
Another concern is that CBDC will give governments more power to control and manipulate their citizens’ financial activities. With complete visibility into transactions, governments will be tempted to impose restrictions on how and where CBDC can be used, obviously limiting individual autonomy and economic freedom.
Additionally, the collection and storage of vast amounts of financial data through CBDC will make it a target for hackers.