Central bank digital currencies could mean the end of democracy
theconversation.comIn recent years, we have witnessed a growing interest in the idea of central bank digital currencies. Similar to cash, central bank digital currencies are a form of money issued by central banks.
In each country, a central bank manages the local currency and the monetary policy to ensure financial stability. Unlike cash, central bank digital currencies are expected to update national financial infrastructures to the changing needs of the economy and technology.
Led by international financial institutions such as the Bank of International Settlements and the International Monetary Fund, central banks examine technologies, conduct experiments and prepare national economic scenarios.
However, central banks cannot — and should not — identify the social consequences of implementing this technology. The transition to national digital currencies gives governments the ability to automate transactions and create conditions under which it can be spent.
