Balaji Srinivasan Criticizes CBDC Controld Financial Authority

CBDC or central bank digital currency. (Photo; Doc. Coinpost)

JAKARTA - Balaji Srinivasan, a former chief technology officer at Coinbase, expressed concern about the central bank's digital currency (CBDC) providing the monetary authority with full control over money. On Tuesday, Srinivasan wrote on Twitter that if the central bank had absolute control over all use of money, it was not in accordance with democratic principles.

Srinivasan's statement refers to Agustwastens' remarks, General Manager of Bank of International Settlements (BIS), in a video conference held by the International Monetary Fund (IMF) in 2020. Carstens stated that with the CBDC, the central bank will have absolute control over regulations and regulations governing the use of expression of central bank obligations and technology to enforce them.

Srinivasan criticized the view by calling it a form of centralized control similar to communism, where all resources are controlled by unelected bureaucrats. Srinivasan's comments sparked discussions on Twitter about the economic freedom and the impact of the CBDC on it.

At the same time, the Bank of International Settlements (BIS) released a survey of CBDCs and crypto assets. The survey results show that in 2022, 93% of the 86 central banks surveyed were involved in CBDC-related work, and more than half have conducted trials in this regard. This shows that central banks around the world are increasingly interested and involved in CBDC development.

Discussions around central bank digital currencies (CBDC) continue, with diverse views on its impact on economic freedom and democratic principles. While some people worry about central bank centralized controls, others see the potential benefits and efficiency that CBDC can offer. This debate continues to grow along with technological developments and changes in the global financial system.