When asked whether a Federal Reserve or Central Bank Digital Currency might be on the horizon, Federal Reserve Chairman Jerome Powell told a congressional committee this year, “We’re nowhere near recommending or let alone adopting a central bank digital currency in any form.”
While Powell admits that while the central bank continues to work on a digital currency, he realizes the obstacles to success at the present time are insurmountable.
For starters, the Fed knows a Central Bank Digital Currency or CBDC could wreck the nation’s banking industry, threaten the dollar’s status as the world’s reserve currency and even threaten the Fed itself.
Financial Expert Nick Anthony of the CATO Institute and author of Digital Currency or Digital Control?, says CBDCs don’t do much of anything well, except spy on you and control your money.
Anthony says the government can’t be trusted with CBDCs “…because they’re so ripe for abuse. The government would have Americans’ data by default. It would be on their servers, a click away.”
Digital money could be programmed for use only toward certain purchases, at certain times, or with an expiration date. It could also be used to manage the economy, such as encouraging spending by
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