Cryptocurrency enthusiasts largely oppose CBDCs — but industry leaders including Consensys, Ripple and Stellar are throwing their weight behind them.
In June 2023, the International Monetary Fund noted that most cryptocurrency innovations have come from the private sector. But it praised central banks for “catching up” through the experimentation of CBDCs and creating state-controlled instant payment systems — like Brazil’s Pix.
Conversely, Stellar advocates for creating CBDCs on its public blockchain, albeit with custom adjustments that allow centralized entities to enhance governance. Within its CBDC, Stellar suggests managing monetary policy and programmability centrally but maintaining a decentralized approach to the technological infrastructure and service delivery.
Of course, blockchain pioneers might be happy to see their formerly marginalized technology now discussed in high-level forums such as the IMF and Davos. Yet, while this recognition may be gratifying, it doesn’t translate into a victory for the ideals of blockchain technology. It’s quite the opposite: CBDCs compromise the core principles and benefits of blockchain — such as immutability and decentralization.
Regardless of the consumer safeguards that may be implemented within various future CBDCs, governments will certainly retain extensive control to modify, adjust, and redefine the rules governing this future form of money over time.When it suits them, western governments will impose financial sanctions against their own citizens for political means. It's not rocket science to understand embracing CBDCs risks emboldening and normalizing the use of these measures.in the industry.
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