Opinion: the banking sector is “fairly” wary of CBDC

JPMorgan and others TBTF– US banks perceive central bank digital currency (CBDC) as a state-backed threat to their business, declared Economist and former Greek finance minister Janis Varoufakis.

Writing for Project Syndicate, the expert compared the banking sector’s current concerns to smoking restrictions.

“Once upon a time, the greed of the tobacco companies was channeled through libertarian outrage at restricting the freedom of smokers to choose cancer. This time, dissatisfaction serves the interests of bankers who panic at the sight of bills. Fed. The masters of the TBTF universe are right to be afraid because the federal CBDC is threatening their empire building,” Varoufakis explained.

According to the ex-minister, financial institutions assume that with the release of the digital currency of the central bank, their services will lose a significant part of the demand.

However, he notes that, contrary to popular belief, CBDCs are not necessarily a dystopian nightmare. The technology could become far more private and “tyranny-resistant” than the current private banking sector, Varoufakis said.

“A proper and democratically controlled deployment of a CBDC could bring cumulative benefits for tax collection, fighting deflation, and strengthening defenses against Big Brother and his many little brothers,” the economist added.

Recall that in May, Texas senators introduced a bill banning the use of the digital dollar in the state.

In parallel, Florida has already adopted a document against the CBDC, which was signed by Governor Ron DeSantis. In his opinion, the law “will protect residents from the administration of the President of the United States, which wants to turn the financial sector into a weapon.”

Later, the United States introduced the “first bipartisan” bill that prohibits the Fed from issuing a central bank digital currency.

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JPMorgan and others TBTF– US banks perceive central bank digital currency (CBDC) as a state-backed threat to their business, declared Economist and former Greek finance minister Janis Varoufakis.

Writing for Project Syndicate, the expert compared the banking sector’s current concerns to smoking restrictions.

“Once upon a time, the greed of the tobacco companies was channeled through libertarian outrage at restricting the freedom of smokers to choose cancer. This time, dissatisfaction serves the interests of bankers who panic at the sight of bills. Fed. The masters of the TBTF universe are right to be afraid because the federal CBDC is threatening their empire building,” Varoufakis explained.

According to the ex-minister, financial institutions assume that with the release of the digital currency of the central bank, their services will lose a significant part of the demand.

However, he notes that, contrary to popular belief, CBDCs are not necessarily a dystopian nightmare. The technology could become far more private and “tyranny-resistant” than the current private banking sector, Varoufakis said.

“A proper and democratically controlled deployment of a CBDC could bring cumulative benefits for tax collection, fighting deflation, and strengthening defenses against Big Brother and his many little brothers,” the economist added.

Recall that in May, Texas senators introduced a bill banning the use of the digital dollar in the state.

In parallel, Florida has already adopted a document against the CBDC, which was signed by Governor Ron DeSantis. In his opinion, the law “will protect residents from the administration of the President of the United States, which wants to turn the financial sector into a weapon.”

Later, the United States introduced the “first bipartisan” bill that prohibits the Fed from issuing a central bank digital currency.

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