Dangerous Implications of CBDCs – Bitcoin Magazine

Natalie Smolenski is a senior advisor at the Bitcoin Policy Institute and executive director of the Texas Bitcoin Foundation, and Dan Held is a Bitcoin educator and marketing consultant at Trust Machines.

This article is an excerpt from a Bitcoin Policy Institute white paper “Why Should the US Abandon Central Bank Digital Currencies (CBDCs)?” Written by Natalie Smolenski with Dan Held.

CBDCs are digital money. Unlike traditional (physical) cash, which can be held anonymously, digital money is fully programmable. This means that CBDCs allow central banks to have direct access to the identities of transacting parties and can block or censor any transaction. Central banks argue that they need this power to fight money laundering, fraud, terrorist financing and other criminal activities. But as we’ll see below, governments’ efforts to meaningfully combat financial crime using existing anti-money laundering and know-your-customer (“AML/KYC”) laws have been woefully inadequate at best, while effectively removing the financial privacy of billions of people. proved. Nation.

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