The CBDC: Digital currency of the future or centralized control?

The Central Bank Digital Coin (CBDC), supposedly a "financial innovation", is nothing more than virtual money issued by a central bank using blockchain technology. But let's not deceive ourselves - it is fundamentally contrarian to genuine cryptocurrencies. While Bitcoin and other cryptos were born to be decentralized and democratic, CBDCs represent exactly the opposite: absolute centralized control.

I have closely followed this development and I can say that it is concerning to see how central banks are trying to co-opt blockchain technology for their own purposes. When a central bank issues a CBDC, it goes directly to users without going through commercial banks. This may seem efficient, but it means that every transaction will be recorded directly in the central bank's books. Can you imagine the level of surveillance? Goodbye financial privacy.

The current system at least has certain filters: central bank → commercial banks → users → payment service providers. With CBDCs, the central bank could have direct access to every penny you spend.

China, not surprisingly, leads the implementation race with its digital yuan. How convenient for a regime that already monitors every aspect of its citizens' lives! Last October, its pilot had already settled 62 billion yuan in payments, with 140 million people using digital currency accounts.

Most important countries are still in the "talk" phase - research without action. The United States is particularly reluctant, needing Congressional approval for any implementation. At least they have that institutional brake.

The most absurd thing is to see countries like Iran announcing investigations into CBDCs. Do they really think this will solve their 30% annual inflation? Or that it will give them entry into the "global financial club"? It's like thinking that buying a Hermès makes you part of the elite.

Real cryptocurrencies, although imperfect, at least represent an attempt at decentralization. Yes, they have problems - the market is tremendously unequal (the Gini coefficient of Bitcoin exceeds 0.9), transactions can be slow, and there are risks such as the collapses of stablecoins like UST.

But at least they are not tools of state surveillance. CBDCs, on the other hand, promise "financial inclusion" while paving the way for unprecedented control over our money. The pretext of "serving the people" sounds hollow when we consider the potential programmability of money - imagine your government could decide exactly what you can spend your money on, or for how long.

I see CBDCs as the Trojan horse of centralized financial control. Blockchain technology should free us from intermediaries, not reinforce their power.

Elena Quintana @analista_cripto