Reasons Why CBDCs are not for the Greater Good of the People

The race to roll out Central Bank Digital Currency (CBDC) into circulation by many countries globally is notable. The digital currency seeks to adopt a centralized theme where the government indirectly influences its issuance and supervision. The trial programs prove successful in some countries such as Japan and Brazil. Economic powerhouses such as the USA have plans to begin research and roll out digital currency infrastructure. Negative elements might result despite the Central Banks being responsible for the coins. The following are some notable setbacks that will prove the currency’s negative influence on the populace: Expensive Transactions via Third Party Entities The issuance of digital coins by the Central Banks follows the identification of commercial banking organizations that will enable consumer trading. The smaller banks collect user data for account creation and issuance of digital currency to facilitate their transactions. The existence of commercial banks as the intermediary between consumers and manufacturers sustains the problem of heavy transaction costs. The choice by governments to ignore blockchain technology when rolling out their digital currencies indicates a willingness to continue making revenue. Despite the efforts to ensure efficient trading, financial organizations provide a setback to consumer satisfaction due to transaction fees. The profit-driven nature of the commercial institutions will hurt...