Edward Snowden: Governments will destroy citizens’ savings with CBDCs
Central bank digital currencies (CBDCs) were criticized by Edward Snowden last Friday (8). For the former security consultant, CBDCs are a “subversion” that the state made of the concept of cryptocurrencies.
Snowden also warned that these coins could cause irreversible harm to the citizens of countries, in disagreement with a New York Times article defending the CBDCs. In fact, Snowden wrote his article in response to the Times article’s author, Dr. Eswar Prasad.
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. https://t.co/720SYvqzZM
— Edward Snowden (@Snowden) October 9, 2021
Entitled Your Money AND Your Life, Snowden first warns of the well-known problem of negative interest. According to this theory, digitizing money will make it easier for states to impose negative fees, that is, charging customers to leave money in banks.
However, Snowden warns: these policies can result in the end of savings and, therefore, harm the citizens of the countries.
“The Fed could [then] impose a negative interest rate. This fee would gradually reduce the electronic balances in everyone’s digital currency accounts,” says the former consultant.
In this sense, negative interest works like cash discounts. That is, the state charges for the simple fact that the money is stopped.
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The measure aims to encourage consumption and investment in riskier asset classes. And this risk of penalizing pupators is also highlighted in the article.
“CBDCs are a ‘useful policy tool’ to casually wipe out the savings of every salaried worker in the country if they don’t spend fast enough,” the article reads.
However, Snowden was even more aggressive in the text, using the term “crypto-fascism” to refer to central bank currencies. The consultant noted that CBDCs are designed to deny their users basic ownership of their money and place the state as mediator in all transactions.