CBDCs Mean Threat To Americans’ Privacy, Fed Governor Says

CBDCs are a hot topic these days, and this is especially due to the dangers that they pose to privacy. Federal Reserve Governor Michelle Bowman said that the adoption of a digital US dollar comes with challenges and tradeoffs despite the opportunities that the new financial system could bring.

During a speech on Tuesday, Bowman says that one of the leading concerns about the central bank digital currency (CBDC) is its significant risks to privacy.

“In thinking about the implications of CBDC and privacy, we must also consider the central role that money plays in our daily lives, and the risk that a CBDC would provide not only a window into, but potentially an impediment to, the freedom Americans enjoy in choosing how money and resources are used and invested.”

Bowman also made sure to say the fact that proper measures should be in place to safeguard the privacy of consumers and businesses. She also said that the system should also be transparent enough to deter criminal activities.

“We must ensure that consumer data privacy protections embedded in today’s payment systems continue and are extended into future systems.”

She continued and stated the following:

“So, a central consideration must be how a potential US CBDC could incorporate privacy considerations into its design, and what technology and policy options could support a robust privacy framework.”

We suggest that you check out the complete original article posted by the online publication the Daily Hodl. 

In China, their CBDC (central bank digital currency) is linked to your Digital ID.

If, for example you’re caught jaywalking, the facial recognition system will immediately display your face on a public board of shame, before automatically deducting your fine from your digital… pic.twitter.com/lI1X0TViiD

— Wall Street Silver (@WallStreetSilv) April 17, 2023

Stay tuned for more details about the upcoming CBDCs.