America: Is a CBDC Really Worth the Trouble?

• The article discusses the pros and cons of a central bank digital currency (CBDC).
• The proposed CBDCs for America may be modeled after China’s version, which could lead to users being spied on.
• It is questionable whether the introduction of a CBDC would bring crypto assets to mainstream appeal.

What is a Central Bank Digital Currency?

A CBDC is a digital asset issued by a centralized bank, like Wells Fargo or Chase Bank. It is similar to paper money, but it has been suggested that its issuance could legitimize the cryptocurrency space and bring it to greater mainstream appeal.

The Issues with a CBDC

China recently unveiled their own version of a CBDC, but many analysts questioned its structure as it allowed Chinese regulators to spy on users and see what they were buying. This goes against the very notions of crypto, which was designed to give its users autonomy and independence from government interference. There are also concerns that an American CBDC would be modeled after China’s version and used for spying on traders.

Opinion: America Doesn’t Need a CBDC Right Now

As governors like Kristi Noem of South Dakota and Ron DeSantis of Florida have pointed out, there are underlying economic issues that need attention before contemplating something like a CBDC – such as helping businesses with debt relief or providing additional stimulus packages for citizens struggling due to COVID-19-related job losses. Therefore, introducing a CBDC right now may not be in America’s best interests at this time.

Pros & Cons of Adopting A CBDC

On one hand, introducing a CBDC could potentially increase mainstream acceptance of cryptocurrencies as well as provide more security measures for transactions between individuals and businesses alike. On the other hand, if it is modeled after China’s version then this would go against the very principles upon which digital currencies were built – autonomy from government control – as well as present privacy issues for traders if used for spying purposes.


Ultimately, while there may be some benefits associated with issuing a central bank digital currency in America at some point in time, right now does not seem like the most ideal opportunity given current economic circumstances and underlying problems that should take priority over any such endeavor at this juncture.