The potential for CBDCs to increase government surveillance and control

Found on: The Full FX

What are CBDC’s?

CBDC’s are better known as Central Bank Digital Currencies. They are digital currencies much like crypto however, they are not decentralized and are issued and controlled by Central Banks and governments. In other words, they are digital currnecies that are regulated by one centralized entity. CBDC’s were created to provide more secure, efficient and stable form of transactions and payment method. There are plenty of reasons why we should implement CBDC’s and plenty of reasons why we shouldn’t. Within this article, CBDC’s will be explained, the countries that are exploring this new digital currency will be explained and my opinion upon this topic will be expressed. I (Phil Mootheril) firmly believe that an opinion upon this matter should expressed since CBDC’s are a relatively new type of digital currency and will most likely have a significant impact within the finance world. An opinion upon this matter is important since it may raise concerns.

The massive potential CBDC’s hold

CBDC’s have the following benefits:

  1. Increase in Financial inclusion
  2. Cheaper & Faster transactions
  3. Increased stability

The massive potential for CBDCs include the better access to financial services for individuals it offers, especially those in remote or underbanked areas, who previously had limited or no access to financial services. CBDCs can also reduce transaction costs and speed up processes compared to traditional and centralized systems. Additionally, CBDCs can provide more stability and certainty than traditional financial systems, as they have underlying blockchain protocols and are less susceptible to volatility and fluctuations.

The massive downsides CBDC’s hold

CBDC’s have the following downsides:

  1. Loss of Privacy and Control
  2. Lack of Autonomy
  3. Potential for Censorship

Privacy and control are the biggest concerns to CBDC’s. The centralized entities controlling CBDC’s will no doubt, have access to your account and account information. This is alarming due to the fact that our privacy is being breached and there is a massive potential for centralized entities to begin data collections and monitoring which could also lead to privacy concerns. Lack of autonomy is another downside. Since CBDC’s are controlled by a centralized entity, many individuals have less autonomy compared to decentralized digital currencies such as Crypto. Furthermore, the potential for censorship is another prevailing factor. Governments may have the power to censor and/or restrict certain transactions or users based on their own interests which ties into the concerns many may have with the lack of privacy, control and autonomy.

How many countries are testing/using CBDC’s?

“A total of 130 countries representing 98% of the global economy are now exploring digital versions of their currencies, with almost half in advanced development, pilot or launch stages, a closely-followed study shows.” (Marc Jones, 2023)

Marc Jones, 2023 | Found on REUTERS

As stated above, most countries globally are exploring the potentials CBDC’s has to offer. With 98% of the global economy developing their own CBDC’s, finance will change rapidly in both positive and negative ways. Positives include the increase in financial inclusion, cheaper and faster transactions and increased stability. The main downside of CBDC’s are the lack of privacy that comes with it as well as the lack of control. Another major downside include the lack of autonomy and potential for censorship. Keep in mind, there are not many countries that have implemented CBDC’s yet. Since they are currently being developed, they are more likely to be implemented in the near future with more centralization.


In conclusion, I have summarized CBDC’s major advantages and disadvantages. Considering the large privacy concerns users may have, I do not believe CBDC’s should be implemented. More importantly, I believe that privacy, autonomy, and control over your finances should be prioritized. Furthermore, I believe that censorship will most likely occur to those with accounts within CBDCs. What if someone says the wrong thing? Is it possible for someone to have an opinion that is hated by the majority of people? Is our bank account going to be frozen? Are our funds going to be taken away? The centralized entities will have too much control over our finances. In my opinion, CBDCs raise too many concerns and leave me with too many questions. This is one of the reasons I strongly oppose CBDCs and believe all centralized entities should respect our privacy.  

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