Conversations regarding the creation of Central Bank Digital Currency (CBDC) used to be confined to monetary policy aficionados and cryptocurrency prophets, but over the past year, this concept of a centralized digital currency issued and controlled by central banks has picked up steam across the African continent, China, the United States and now Mexico.
According to Bitcoin Magazine, Mexican Senator Indira Kempis proposed “draft legislation amending the country’s Monetary Law to include currencies issues by the central bank.”
Kempis supports the notion that direct intervention by the Mexican government is vital to the long-term financial health of the nation.
According to Kempis’ proposal, “It is essential that the State, through the regulation of the financial system, promote a greater access to and use of financial services through intervention to ensure that service providers provide fair treatment and quality service to their users, as well as how to create financial education programs that provide the necessary knowledge for Mexicans to make informed and aware decisions of their resources.”
This would also allow the central bank the authority to issue and control “virtual assets” such as a CBDC and have broader regulatory policies regarding cryptocurrencies such as Bitcoin and others.
In the United States, similar proposals have been discussed and had their ideas supported by lawmakers such as Senator Elizabeth Warren (D-Mass), who advocated for the creation of a CBDC on NBC’s “Meet the Press Reports” with Chuck Todd on April 1, 2022.
You can see Senator Warren’s full comments on cryptocurrency and regulations she would support in the video below.
“So a lot that banks do wrong, if you think, ‘We could improve that in a digital world,’ the answer is, ‘Sure you could.’ But in that case, let’s do a central bank digital currency,” Warren told Todd. “Yes, I think it’s time for us to move in that direction.”
Other lawmakers such as Congresswoman Marjorie Taylor Greene (R-Ga) are openly opposed to government intervention in the cryptocurrency space.
On February 17, 2022, when commenting on the Canadian government’s freezing of bank accounts as well as cryptocurrency donations made to the “Freedom Truckers” movement, Greene tweeted that she saw the actions of Canadian Prime Minister Justin Trudeau as “full dictator” and that there needs to be a stance made to protect the rights of cryptocurrency owners.
Advocates against the creation of CBDC’s and cryptocurrency restrictions such as Greene claim that the CBDC’s could be used as a tool which would eliminate all aspects of financial privacy among transacting parties and could be used to limit individual actions not politically acceptable.
Vice President and Director of the Cato Institute’s Center for Monetary and Financial Alternatives, Norbert Michel, echoes the view that the creation of a CBDC would be detrimental to individual liberty.
According to a recently published op-ed in Forbes, Michel states that with a CBDC there essentially would be no limit to the extent of government control over the financial transitions of the citizenry if they were forced to use only one, centralized, digital form of money.
“A CBDC” Michel claims, “would give federal officials full control over the money going into–and coming out of–every person’s account.”
Michel discussed CBDC more in-depth during the forum “US CBDC — A Disaster in the making?” hosted by Sustany Capital last month. You can see his full comments in the video below.
About the Author:
Remso W. Martinez is a journalist and Amazon bestselling author of “Stay Away From the Libertarians!” and “How to Succeed in Politics (and Other Forms of Devil Worship).” You can follow him on Twitter @heyremso or on his website rwmartinez.com.
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