Central Bank Digital Currencies: Controversies and Perspectives – Should We Be Afraid of Them?
Central Bank Digital Currencies: Controversies and Perspectives
The European Central Bank (ECB) and the United States Federal Reserve are considering the introduction of digital versions of their currencies. This idea is raising numerous controversies and concerns worldwide, involving both technological and political aspects.
Resistance to the Digital Euro
The European Central Bank is planning to create a digital euro as a complement to traditional cash. However, this plan faces resistance from some member countries, such as Germany, Austria, the Netherlands, and Slovakia. Concerns regarding the introduction of a central bank digital currency stem from fears of technology dependence, potential privacy violations, and risks associated with changes in monetary policy.
Advantages according to the ECB
The European Central Bank emphasizes that the digital euro will feature advanced security functions and ensure user privacy. In 2023, ECB President Christine Lagarde announced that the digital euro will exist alongside traditional cash, with digital euro transactions being free of charge.
Dispute in the USA
In the United States, discussions are also ongoing regarding the potential introduction of a digital dollar. However, politicians, especially those on the right side of the political spectrum, oppose this idea. Former President Donald Trump publicly referred to the digital dollar as “very dangerous” due to concerns about government overreach. Similar concerns are expressed by Florida Governor Ron DeSantis, who also opposes the digital dollar.
Global Trend
China has already launched the digital yuan, while the Bank of England is working on creating a digital pound. Many countries are contemplating the introduction of central bank digital currencies. The final decision on this matter will be made within the next two to three years. There is a growing interest in this topic among central banks worldwide.
Central bank digital currencies have become the subject of increased attention and public debate. Despite controversies and concerns, many countries are considering the introduction of their own digital currency versions, moving towards the next stage in the evolution of financial systems.
