Cardano Founder Warns Against Central Bank Digital Currencies

Cardano Founder Warns Against Central Bank Digital Currencies

AltcoinsCBDC

By Jakub Lazurek

13 May 2024 (2 months ago)

2 min read

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Cardano's Hoskinson voices concern over CBDCs, fearing increased government control

Charles Hoskinson, the founder of Cardano, recently emphasized the importance of cryptocurrencies in ensuring that governments and companies remain accountable. In a social media update on May 11, he expressed concerns over the rising influence of Central Bank Digital Currencies (CBDCs), warning they could centralize power dangerously.

In his post, Hoskinson argued that the crypto community should concentrate on the fundamental purpose of cryptocurrencies, which is to create a new framework of accountability for authorities, rather than getting sidetracked by lesser issues like tax debates and regulatory discussions.

He cautioned that ignoring the growth of cryptocurrencies could lead to CBDCs becoming dominant, which might increase governmental surveillance and control over citizens, threatening their privacy and freedom. Hoskinson stated that CBDCs could be used by governments to control information and limit social mobility.

This perspective is shared by privacy advocates who see CBDCs as tools for extensive governmental surveillance and control. Notably, Robert Kiyosaki, author of “Rich Dad Poor Dad,” has also warned about central banks using CBDCs to monitor individuals. Kiyosaki has responded by increasing his investments in Bitcoin and silver.

CBDCs are essentially digital versions of national currencies, intended to facilitate faster and more secure transactions. Currently, a significant portion of the world’s economies is exploring or implementing CBDCs, with 68 countries involved in advanced stages of projects, including pilot tests in countries like Brazil, Japan, and India.

In conclusion, while CBDCs promise to streamline transactions and enhance security, prominent figures like Hoskinson and Kiyosaki caution against their potential to infringe on personal freedoms. As the global shift towards digital currencies accelerates, the balance between technological progress and individual rights remains a critical debate.

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