Central Bank Digital Currency (CBDC) has been dubbed a “cryptofascist currency” by Edward Snowden, a former NSA contractor and whistleblower. It is primarily meant to deny individuals fundamental control of their money. In a tweet, Snowden stated that the CBDC will put the state at the center of every transaction, contradicting the virtual currency’s basic ideas and procedures. The cryptocurrency was created as a decentralized currency that was independent of any single authority’s control. It was created to take financial institutions like banks out of the trading and investing process.
Despite the fact that bitcoin has seen significant growth this year, some individuals remain skeptical owing to the lack of an underlying asset or official support. Many countries are treading carefully when it comes to granting it legal currency status. They claim to be researching emerging technologies and developing a CBDC that will be backed by a sovereign guarantee.
“A CBDC is a perversion of cryptocurrency, or at least the founding principles and protocols of it—a cryptofascist currency, expressly designed to deny you the basic ownership of your money by installing the State at the center of every transaction,” Snowden stated.
Snowden opined strongly against the potential use cases of CBDCs, including the belief that a CBDC will be the representation of the digital dollar, in a tweet that shared a link to his newsletter titled “Your Money and Your Life,” in which he opined strongly against the potential use cases of CBDCs, including the belief that a CBDC will be the representation of the digital dollar.
“Rather, I will tell you what a CBDC is NOT — it is NOT, as Wikipedia might tell you, a digital dollar. After all, most dollars are already digital, existing not as something folded in your wallet, but as an entry in a bank’s database, faithfully requested and rendered beneath the glass of your phone,” he added.
Snowden, who currently lives in Russia after disclosing NSA material to the public and fleeing the US, has previously criticized and praised cryptocurrencies.