Governments all over the world are rushing to introduce their Central Bank Digital Currencies, or CBDC’s, before their physical fiat currencies collapse as trust in the current financial system continues to decline.
Why central banks want to roll out their digital currencies?
The first reason is one that all central banks love to throw around and that’s that central bank money is the safest form of money.
The authors then claim that quote as the use of cash is declining the promise of convertibility at par becomes less and less meaningful.
The second reason why central banks want CBDC’s is monetary sovereignty.
A CBDC would make it possible for governments to prevent foreign currencies from competing with their national currencies. If you’re wondering why governments and
central banks don’t like this currency competition it’s because it would fundamentally force them to act more responsibly with their spending and printing which most governments and central banks don’t want to do because it benefits them and their friends.
As such just about every country would quickly see its national currency replaced by some foreign currency likely the US dollar in the form of stable coins like USDT and USDC, given that this is slowly but surely starting to happen in countries that are experiencing the most inflation.
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