Balaji Srinivasan Slams Centralized Control of Money by Central Banks
Entrepreneur Balaji Srinivasan, former chief technology officer at Coinbase, has slammed the centralized control of money by central banks, particularly through the implementation of central bank digital currencies (CBDCs). His remarks came in response to statements made by the General Manager of the Bank of International Settlements (BIS) during an IMF meeting on cross-border payments.
Former Coinbase Tech Chief Raises Concerns Over CBDCs' Impact on Democracy
The former chief technology officer at Coinbase, Balaji Srinivasan, raised his concerns over central bank digital currencies (CBDCs) impacting democracy as monetary authorities are likely to control money. On Tuesday, Srinivasan used his Twitter account and said:
"When the head of BIS says ‘central banks will have absolute control’ over all uses of money, that’s not democracy."
Balaji's remarks are in response to statements made by the General Manager of the Bank of International Settlements (BIS), AgustÃn Carstens, at a video conference hosted by the International Monetary Fund (IMF) back in 2020.
The Managing Director of the IMF, Kristalina Georgieva, discussed future changes in cross-border payments with the policymakers participating in the event on the advent of new technologies and digital currencies.
During the IMF meeting focused on cross-border payments, Carstens emphasized that CBDCs would grant central banks "absolute control" over the rules, regulations, and technology governing the use of digital currencies.
Reacting to this, Srinivasan stated on Twitter:
“That’s when Keynesianism finally drops the mask and becomes flat-out communism: total centralized control of all resources by unelected bureaucrats.”
Growing Debate on Central Bank Control and CBDCs Sparks Twitter Discussion
Srinivasan's comment triggered a lively discussion on Twitter, with many users sharing their thoughts on the potential implications of centralized control over money.
Coinciding with Srinivasan's tweet, the BIS released a survey on CBDCs and crypto assets. According to the survey, 93% of the 86 central banks surveyed in 2022 were actively involved in CBDC-related work, with over half of them conducting tests and pilots.
The growing debate surrounding central bank control and the implementation of CBDCs has sparked widespread interest and concerns regarding the future of monetary systems and democratic principles.
Balaji Srinivasan's criticism of centralized control over money by central banks, particularly through CBDCs, has ignited a heated discussion on social media platforms, highlighting the ongoing debate surrounding monetary authority and the potential consequences for democratic systems.
What is your take on the impact of CBDCs on democracy and individual financial freedom? Please share your thoughts and opinions in the comments section below.
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