How much do you know about CBDCs? If you think this is the latest variant of a green plant that you can eat to get all warm and fuzzy, the answer is: not much! 😆
But that’s okay! It’s what we’re here for.
CBDC stands for “centralized bank digital currency” a.k.a. “digital dollars.”
And it changes EVERYTHING.🤯
This is not an exaggeration. If the US moves to a CBDC system, then every part of your life will change. You need to know about this!
Here are Five Fast Facts on CBDCs:
- 🤔 What Is It? CBDC is a pretty new thing but dozens of countries are exploring and several others have already adopted it. The idea is to use digital wallets and computers for all financial transactions. Yes, ALL of them. Even the neighbor kid’s lemonade stand.
- 💻 Make It Official? The big question right now is whether or not these “digital dollars” should be the official currency. If this happens, the government officially stops printing paper dollars and instead goes 100% digital. The value of the CBDC is still fixed and maintained by the government, just like standard money, and the “digi-bucks” will also be impacted by stuff like inflation. However, all of the financial stuff would happen via apps and computers rather than with cold, hard cash.
- 👍 The Good - Supporters say CBDCs are a great way to reach the 18% of American adults who don’t have a bank account or who use costly services like payday loans or check-cashing instead of a bank. CBDCs also provide convenience and accessibility, and make it easy to move money very cheaply. It also provides complete trackability so law enforcement can do their thing (for better or worse).
- 👎 The Bad - Opponents say CBDCs will destroy what little financial privacy there is today. The government would see in real time every transaction you make, all day every day. Also, if one bank today gets hacked or loses your private information, it’s only that bank’s customers that are put at risk. If a CBDC gets hacked, it’s the entire nation at risk. Also, there’s no way to know what would happen to huge chunks of our nation’s professional services, like accounting, banking, lending, and more.
- 😱 The (Potentially) Ugly - The really scary thing about CBDCs is that if the government has complete visibility to every dollar you spend or earn, then what’s stopping them from controlling those dollars? Literally nothing. CBDCs can be programmed to prevent you from buying certain products or shopping at certain places. Fortunately, the government is immune to corruption, otherwise this would be cause for concern…right??
🔥Bottom line: Moving to a CBDC rather than standard money has some benefits and some major concerns. There’s no doubt it would be nothing short of a complete overhaul of America’s financial system, and it would give the government unprecedented power and control over your everyday life. This is probably why only 16% of Americans support such a move.
You have to decide for yourself, of course. But you’ll be hearing more about CBDCs in the next few years as the US explores the idea. If you have strong feelings either way, get involved in the political process and make sure you vote for reps who agree with your opinion! It’s a big deal, and we need to make sure we get it right!
What do you think of CBDCs?
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