The central bank digital currencies (CBDC) are becoming more common as various countries continue to explore the concept. Many experts believe that these assets will be essential for the control of governments. However, there have also been constant criticism of the use and scope of CBDCs.
Recently, the CEO of Blockstream and Bitcoin enthusiast, Adam Back, has said that CBDCs are worse than bank accounts. In his recent tweet, he issued his support for Bitcoin but stated that CBDCs are “control systems”. He was referring to the fact that the regulation of these assets by the government and the authorities is a controversial phenomenon.
well said @Excellion #bitcoin is apolitical, bearer, unseizable money. and that is what matters. stablecoins > CDBC. in fact CDBCs are systems of control, worse than bank accounts, certainly worse than paper cash, worse than stable coins, and much worse than #bitcoin. https://t.co/hzbRvlM1Zs
— Adam Back (@adam3us) July 21, 2022
Additionally, Back also said that the digitized version of traditional or fiat currencies will be “worse than paper money, worse than stablecoins, and much worse than Bitcoin.” Back has been a strong supporter of Bitcoin for its security and transparency. He claims that Bitcoin is completely sovereign, which makes it superior to all other projects that are being developed in the digital asset industry. He added that Diem could be competition for online banking, but cannot compete with Bitcoin.
Back disapproved of the use of CBDC in transactions
Back’s comments were influenced by the old Head of Blockstream Strategy, Samson Mowwho spoke at the Asian Leadership Conference. Mow stated that the hype and support surrounding CBDCs is not meant to facilitate transparent and confidential transactions. Therefore, people should make a move to ensure the use of unregulated money, such as Bitcoin. Mow urged countries to follow in the footsteps of The Savior to accept Bitcoin.
Despite the criticism, CBDCs are becoming more and more relevant around the world. China was the first country to actively carry out its digital currency project. The digital yuan Chinese became a success, as more than 250 million registered wallets use this monetary asset. Furthermore, countries like Japan, South Korea and India have also carried out similar projects. Other countries have also been inclined to develop a somewhat similar project.
A sharp rise in interest was noted due to the Russian invasion of Ukraine. Due to this, countries and people realized the importance of anonymity when making transactions. Furthermore, banking sanctions fueled the growth and emergence of CBDCs in many countries. But many experts believe that CBDCs should not be backed by central banks as they lack innovation. Furthermore, its control and regulation over the asset will make it more controversial in the long run.
