Trump vs CBDC

Donald Trump, in his usual categorical manner, took a stand against the digital currency being developed by the Fed. Trump is quite loyal to cryptocurrencies and has crypto assets in his investment portfolio. Why is there such a rejection of the official state digital currency?

Some clarification is required.

CBDC is a special asset that is issued by a central bank. The exact technical parameters of CBDC are unknown, but it is to be expected that unlike Bitcoin, for example, it will not be decentralized. Developers modify the blockchain to be able to manage the issue and, if necessary, the users' wallets. Therefore, CBDC is not the cryptocurrency that Satoshi Nakamoto intended.

If the "classic" Bitcoin was created as a state-free tool, CBDC, on the contrary, makes total control. The state will online know the location of each coin. The concept of bank secrecy, which is now so conditional, disappears altogether.

China and Russia, for example, are countries that are difficult to suspect of sympathy for democratic values. The European Central Bank is developing its digital currency, which has long shown an interest in strengthening financial supervision. 

Trump is a businessman who does not accept state interference in business and private life. This is not an assessment of his position, but simply a statement of fact. The same worldview is characteristic of many representatives of American business. Hence such an attitude arises towards attempts to control finances.

With a high probability, we will see a new confrontation in which the supporters of total control on the one hand and the supporters of business freedom on the other will participate. My sympathies are obviously on the side of freedom. If CBDC will be introduced and will replace traditional currencies, it would be a major step towards a totalitarian system.

However, the results of the confrontation are far from obvious, the resources of both sides are great, in any case, we will have an interesting time. 

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