Potential Misuse of CBDCs: A Growing Concern Discussed at Oslo Freedom Forum
Summary:
This article discusses the growing concern over the potential misuse of central bank digital currencies (CBDCs) discussed at the Oslo Freedom Forum. The author reflects on how governments worldwide could abuse CBDCs as a tool of financial control, particularly in authoritarian regimes. The rollout of such currencies in Nigeria and China is highlighted, demonstrating issues of government inefficiency. The piece suggests that raising awareness of these emerging risks could play a significant part in challenging these developments.
The potential misuse of central bank digital currencies (CBDCs) by governments has become a prominent worry, as revealed at the recent Oslo Freedom Forum. Particularly for those resisting under authoritarian governments, the fear of authority's misuse of power is growing. The Oslo Freedom Forum, hosted annually by the Human Rights Foundation in Oslo, Norway, provides a platform for human rights activists to exchange experiences and strategies to create a better tomorrow. I spent the initial two days educating attendees about CBDCs using a Human Rights Foundation installment piece. The common response was a disbelief about their own country's involvement in this.
Given the forum's context, it's understandable why these developments resonate such concern. Examples of government invoking financial control as a means to suppress opposition can be seen in places like Russia to Nicaragua. Cases of Carlos Chamorro, Jimmy Lai, and Alexei Navalny present a stark picture of how speaking out against dictatorship and corruption can result in severe financial ramifications.
Governments globally have used financial control as an instrument of authority. The emergence of CBDCs heightens this power hold's potential. During my speech on stage, I discussed these concerns with Charlene Fadirepo and Roger Huang, authors of "The Bitcoin Leap" and "Would Mao Hold Bitcoin?" Both authors unveiled governmental inefficiency, as seen in the CBDC rollout in Nigeria and China. Regardless, inefficient governance may not entirely be a disadvantage. Huang cautioned the tendency of such governments to counterbalance their ineptness through forceful measures.
More forceful measures are already operative in Nigeria, where an orchestrated cash shortage pushed citizens into CBDC adoption despite its low success rate. With the rising influence of CBDCs, much is at stake, especially for human rights proponents. As Liu Xiaobo, a Nobel Peace Prize winner, once mentioned, total control over income would inhibit any form of dissent. Seth for Privacy further emphasized this point indicating that effective protest and activism become nearly impossible under total governmental financial control.
The Oslo Freedom Forum is an eye-opening experience. Though one might feel their impact is insignificant in the face of dire circumstances, merely raising awareness about these emerging risks can be a potent way of resisting. A significant portion of the global population is unaware of the term "CBDC" and the potential risks it holds. Hence, creating awareness is the first real battle to prepare for.
Nicholas Anthony, a guest columnist for Cointelegraph and policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives, is the author of "The Infrastructure Investment and Jobs Act’s Attack on Crypto: Questioning the Rationale for the Cryptocurrency Provisions" and "The Right to Financial Privacy: Crafting a Better Framework for Financial Privacy in the Digital Age." This article offers general information and is not intended as legal or investment advice. The author's views are expressed independently and do not necessarily represent or reflect those of Cointelegraph.
Published At
6/11/2024 11:34:04 PM
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