Cato Institute shared its research on American Central Bank digital currency and noted that it may result in a very big disaster for the privacy and freedom of US citizens.
Just like other central banks, the United States Federal Reserve is also studying & considering the development of the Central Bank Digital Currency CBDC), or say Digital Dollar. In a couple of years, several people address risks associated with the digital dollar concept.
On 4 April 2023, Cato Institute, an American libertarian policy research think tank headquartered in Washington DC, published a report on US developing CBDC and noted that it represents a danger to the financial privacy of citizens.
Research stated that the US economy doesn’t need CBDC & there is no place for such a payment tool in America, so US Congress should prohibit the US Federal Reserve & Department of the Treasury from issuing a CBDC in any form.
According to the Cato Institute, CBDC may include fears over tracking and control, destabilization of the free market, and cybersecurity.
However, the US Fed confirmed that they are working on CBDC but they failed to confirm the possible year when CBDC will be issued for citizens.
In 2022, the US Fed launched FedNow, as an alternative to CBDC. FedNow will be open for citizens to use by July of this year.
So far, 10 countries successfully launched their CBDC and in this race, China is ranking at the top.
In the initial days of the CBDC development & adoption race, the US was trying to remain away but few people claimed that if America did not bring its CBDC then other countries’ CBDC may dominate over the US dollar.