Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
News Every Day |

‘Privacy‐​minded’ CBDCs Are a Wolf in Sheep’s Clothing

‘Privacy‐​minded’ CBDCs Are a Wolf in Sheep’s Clothing

Nicholas Anthony

It may come as a surprise to some that there have been recent efforts to propose “privacy‐​minded” central bank digital currencies (CBDCs). Proponents counter concerns that CBDCs will lead to greater surveillance by saying things like, “It just needs to be designed right,” or “We just need a CBDC bill of rights.”


The idea is a welcome change of pace, but one that is likely too good to be true. The problems with these arguments are probably readily apparent. But to put things bluntly, so that it is abundantly clear: There is little reason to trust the United States government to establish a “CBDC bill of rights” when it has already done so much to undermine the existing Bill of Rights. From the creation of the third‐​party doctrine to the failure to adjust reporting thresholds for inflation, the government has largely eroded any protections for financial privacy.

Another example from history might make the risk of proposing a privacy‐​minded CBDC more tangible. When Edward Snowden, a former National Security Agency (NSA) consultant turned whistleblower, leaked classified information in 2013, it was revealed just how huge domestic surveillance had become in the wake of the September 11 attacks. Yet there was a smaller story within these revelations that is especially telling when considering proposals for a privacy‐​minded CBDC. Thomas A. Drake, a former NSA official turned whistleblower, shared how he proposed a system at the NSA that could have better protected the privacy of Americans during domestic surveillance.


The basic premise was that, although it would be a sweeping surveillance program, any identifying information would be anonymous by default. However, if there was actionable information, then a warrant could be secured to de‐​anonymize and identify to whom the information pertained. Drake took this proposal to NSA leadership, but he was ignored and eventually told that the NSA was not interested in the idea.

It later came to light that the program Drake proposed was used, but the section that would have protected Americans’ privacy had been stripped out. In other words, the team that worked to create a limited surveillance system that would attempt to respect Americans’ privacy inadvertently created one of the largest surveillance systems in U.S. history.

This experience should be viewed as a cautionary tale for those seeking to promote CBDCs. Much like Drake’s experience at the NSA, it’s likely that even a well‐​intentioned design could quickly become something very different. Whether due to inertia or a crisis, the history of financial surveillance has already shown how something introduced subtly can quickly expand.

Chris Meserole, the director of the Artificial Intelligence and Emerging Technology Initiative at the Brookings Institution, put it well when he responded to a question about the risk of a CBDC being used for surveillance and control in the United States. “I’m not worried about the U.S. immediately going down that road,” he said, “but I do worry pretty significantly that once [a CBDC] is created, all it is going to take is [an awful event such as a terror attack] and suddenly there is going to be immense pressure to use that system in pursuit of different security or criminal justice activity.”

Ethereum cofounder Vitalik Buterin has warned much the same, saying that he once had “somewhat more hope, probably naively” that CBDCs could incorporate the transparency, verifiability, and privacy of cryptocurrencies. However, he noted that after CBDC systems are developed, the protections “all sort of fall away.”

“We get systems that are not actually much better than existing payment systems, because they just basically end up being different front ends for the existing banking system,” Buterin said. “They end up being even less private and basically break down all of the existing barriers against both corporations and the government at the same time.”

These concerns should not be shocking. Central bankers — including Federal Reserve Chair Jerome Powell, Bank for International Settlements general manager Agustín Carstens, European Central Bank President Christine Lagarde, and Bank of England Governor Andrew Bailey — have openly and repeatedly said that anonymity and complete privacy would not be an option with a CBDC.

Given that the risks are so many, and the benefits are so few, this path is one that is likely better left untraveled. CBDCs are ill‐​suited for helping financial inclusion, too late to improve payment speeds, unlikely to advance monetary policy, and unhelpful for maintaining the dollar’s world reserve currency status. With that in mind, there should be little doubt that governments most likely want CBDCs to solidify their control over money in response to the rise of cryptocurrencies.

Likewise, there should be little doubt that organizations pushing CBDCs and the tech companies developing them have a profit incentive to encourage CBDC adoption regardless of the outcomes to which they may lead. Proposals for a “privacy‐​minded CBDC” are, unfortunately, likely to prove to be little more than a wolf in sheep’s clothing.


Важные фигуры. Как белгородские шахматисты становятся чемпионами

Surya set to pip Hardik , emerges as dark horse for India's T20I captaincy

Biden's anger bleeds through as party weighs his future

Bears Reportedly Played A Big Part In Giants Losing Saquon Barkley

Suspect arrested for ‘threatening to kill Trump and his VP pick JD Vance’ in Florida days after assassination attempt

Read also

I’m a gardening expert…I swear by a 24p hack to stop caterpillars and bugs climbing on your plants and eating them

WSJ Reporter Sentenced to 16 Years in Prison, Employer Calls It a ‘Disgraceful, Sham Conviction’

IT outage caused by CrowdStrike update: CEO explains

News, articles, comments, with a minute-by-minute update, now on

News Every Day

Bears Reportedly Played A Big Part In Giants Losing Saquon Barkley — latest news 24/7. You can add your news instantly now — here

News Every Day

Faculty of International Journalism and Mass Communications Eurasian International University is conducting an additional intake of applicants!

Sports today

Новости тенниса

Принцесса Кейт Миддлтон надела на Уимблдон платье в цветах теннисного клуба

Спорт в России и мире

Ротенберг о матче звезд КХЛ и НХЛ: «Не терпится увидеть коллег-тренеров, ребят, с которыми прошли огонь и воду, играли на ЧМ, побеждали на Олимпийских играх»

All sports news today

Sports in Russia today


«Динамо» представило промо-ролик к новому сезону: в нем есть Деревянко и дельфин в красно-белой форме

Новости России

Game News

Интервью AppTime с компанией Innova: релиз Gran Saga в России, внутриигровая оплата и «Масленица» в корейской MMO

Юлия Пересильд

Юлия Пересильд споет на крыше

Губернаторы России

Бизнес-коуч из Чебоксар перевела мошенникам 16 миллионов рублей через банкомат

«Надо подавать в суд»: Мария Аронова опровергла сообщения о своей госпитализации

Певец Дмитрий Камский готовит к релизу новый сингл "Песня Земли"

Диетолог Писарева рассказала о пользе черники для зрения и молодости

Двое детей стояли в окне второго этажа дома на Святоозерской улице и просили еды

Иркутский саксофонист стал дипломантом конкурса композиторов «Академии Бутмана»

Гроссмейстер из Бурятии Жамсаран Цыдыпов продолжает лидировать на турнире «Moscow Open – 2024», набрав 6,5 очков после 7 туров, на пол-очка отстают Борис Савченко, Сергей Волков и Владимир Захарцов

Пока в Якутии была ночь: фараоны под водой, задолженность Ивлеевой, гигантские скопления медуз

Народный артист России Игорь Бутман: «В джазе не надо ничего понимать»

«Завоевать медаль для страны». Хуркач перенёс операцию на колене и думает об Олимпиаде

«Такими вы их никогда не видели». ATP опубликовала видео с Медведевым и Рублёвым

Экс-теннисист Ольховский: победа Медведева над Синнером была неожиданной

Принцесса Кейт Миддлтон надела на Уимблдон платье в цветах теннисного клуба

Скиппинг и танцы: как тренировки со скакалкой влияют на физическое здоровье

Декларация Человекоцентричности

Shaman объяснил, почему выступил у посольства США в Москве

Shaman назвал выступление у посольства США ответом РФ на блокировку на YouTube

У посольства США в Москве прошел митинг-концерт Shaman против блокировки на YouTube

Хотите попробовать себя в уличной торговле?

Молодёжное первенство. ЦСКА вырвал победу в дерби у "Динамо", "Зенит" проиграл дома "Чертанову".

Пока в Якутии была ночь: фараоны под водой, задолженность Ивлеевой, гигантские скопления медуз

России есть смысл инвестировать в себя, а не в экспорт газа в Иран

Стало известно, сколько займет восстановление работоспособности всех систем Windows

Ефимов: предприниматели выкупили у Москвы 240 арендованных помещений с января

Важные фигуры. Как белгородские шахматисты становятся чемпионами

Путин в России и мире

Персональные новости
Мари Краймбрери

МакSим, Мари Краймбрери, Анна Седокова, DEAD BLONDE, Ольга Серябкина и другие артисты представили новинки на «Вечернем Звуке»

News Every Day

Biden's anger bleeds through as party weighs his future

Friends of Today24

Музыкальные новости

Персональные новости