**Central Bank Digital Currencies: A Dangerous Path**
**Key Points:**
1. Central banks around the world are experimenting with issuing digital currencies, touting benefits such as cost savings and consumer protection.
2. However, removing private banking middlemen raises concerns about government surveillance and control over financial transactions.
3. Central bank digital currencies eliminate the use of cash, making all transactions traceable by the government.
4. These currencies could be used to advance political agendas, such as favoring certain energy producers and punishing others.
5. The rushed government payments during the pandemic demonstrate the wastefulness and inflationary risks of a government-controlled monetary system.
**Hot Take:**
The authors argue that central bank digital currencies pose significant risks in terms of government surveillance, political manipulation, and financial instability. They propose that a fixed monetary system, such as Bitcoin, offers a more stable and neutral unit of measurement. They also suggest that countries with a history of mismanaged monetary systems could benefit from adopting programmatic cryptocurrencies. However, prosperous countries that have not sought to control their citizens through the financial system should avoid nationalizing banking.
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