CBDCs Will Open Pandora's Box of Privacy Concerns

7.7.23 - CBDCs Will Open Pandora's Box of Privacy Concerns

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Former SEC Official Says CBDCs Will Open Pandora's Box of Privacy Concerns, Supports Ted Cruz's Proposed Ban -Daily Hodl

A former official of the U.S. Securities and Exchange Commission (SEC) says the establishment of a central bank digital currency (CBDC) is possibly the most absurd financial idea in the history of monetary policy.

Ex-chief of the SEC Office of Internet Enforcement John Reed Stark says the CBDC does not solve any problem at all since trusted digital currencies regulated by the government authorities and US-registered financial institutions already exist.

He says what the digital dollar would actually do is give rise to policy issues.

"The risks of a CBDC remain myriad and raise a variety of important policy questions, including how a CIBC might affect financial-sector market structure, the cost and availability of credit, the safety and stability of the financial system and the efficacy of monetary policy."

According to Stark, the creation of a CBDC will also unleash a multitude of privacy and security concerns, akin to opening a Pandora's box.