CBDC News

Understanding the Arguments Against Fiat Currency

Those who oppose CBDC use a range of arguments. One is a general argument that fiat money allows governments to expand the money supply at will, removing the constraint on government to pursue ‘sound money’. The argument is that this allows governments to be irresponsible at the expense of the purchasing power of ordinary people. One has to assume that these critics do not believe democratic systems result in people removing irresponsible governments.

They go on to point out that CBDC has issues of financial privacy and the potential for government control. The People’s Bank of China has indicated that it could put limits on the sizes of some transactions, or even require an appointment to make large ones.