Financial advisory firm deVere Group CEO Nigel Green says that central bank digital currencies (CBDC) will increase the popularity of cryptocurrencies.
“As more and more countries introduce their own CBDCs, I’m confident that the case for cryptocurrencies, such as Bitcoin, will grow stronger. CBDCs might have many advantages, including convenience, efficiency and transparency, but what they do not offer the user is privacy.”
He predicts governments will defend CBDC against the criticism by dismissing privacy concerns as overblown. But he calls CBDC a real privacy threat since they will give the government an unprecedented ability to track spending.
“But it is important to point out that these state-backed, programmable digital currencies will provide governments greater oversight of citizens’ transactions in real-time.
They are going to be a game-changer in the financial system as they will be able to track and trace every purchase and monitor every penny of the money that’s being spent.”
Green’s comments come after a recent press release from the United Kingdom’s HM Treasury and the Bank of England that says they are investigating whether to issue a CBDC and a decision could come within the decade.
Says UK Chancellor of Exchequer Jeremy Hunt,
“While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible and easy to use. That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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