Central bank digital currencies (CBDCs) pose a foundational threat to America’s economic systems with absolutely no upsides, according to a recent analysis from the Cato Institute, which stressed that a U.S. CBDC will threaten citizens’ “core freedoms” from financial privacy to personal liberty.
Even though there are no valid reasons for the U.S. government to issue a CBDC when “the costs are so high and the benefits are so low,” significant efforts are being made by government officials and central bankers to launch the digital currency “in a bid to solidify government control over payments systems,” said the institute’s assessment report published Tuesday.
