CBDC Central bank Digital Currency written on a microchip

Technology has been advancing rapidly across all facets of our lives and is set to shape the future of monetary assets as well. We have grown accustomed to the simplicity of paying for goods and services effortlessly by scanning our phones, eliminating the need to carry wallets or worry about having enough cash or cards.

However, the convenience devil lurks in the details, and we must not overlook the increasing attempts by authorities to control our lives through restrictions on movement, speech, available services, and potentially even our own spending habits. Is society gradually moving towards a cashless system where government control over finances becomes absolute? As we have witnessed so far, the narrative of safety and practicality makes it an easy concept to sell.

We are standing on the edge of this digital financial transformation, and it is crucial to understand the implications of CBDCs.

What is CBDC (Central Bank Digital Currency)

In this digital era, the way we handle money is changing rapidly, with cryptocurrencies causing quite a stir, laying the groundwork for innovative financial systems and a future of effortless transactions. At the forefront of this digital financial frontier is the concept of Central Bank Digital Currency (CBDC), a digital rendition of a country’s currency issued and backed by its central bank. Unlike decentralized cryptocurrencies like Bitcoin, CBDCs are centralized, preserving the traditional monetary control intrinsic to current financial systems.

The appeal of monetary evolution and the promise of improved efficiency and broader financial inclusion by cutting out unnecessary fees from transaction intermediaries make CBDC an attractive route for nations. Yet, this path is not without its challenges.

As we navigate this digital financial shift, it’s important to understand the net consequence of such a change. While it offers the promise of convenience, it also threatens individual privacy and gives governments more control over how people spend their money. The centralized nature of CBDC opens the door for increased surveillance, potentially giving governing bodies a lot of insight into individuals’ financial behaviors.

We often hear about China’s Social Credit System and its extensive monitoring and tracking of citizens’ behaviors and transactions through various data sources, including surveillance footage and government records. It aims to influence behavior by assigning scores based on observed actions, rewarding “good” behavior with perks like more accessible access to loans while penalizing “bad” behavior with restrictions on travel and other disadvantages.

Now, imagine if a government like that controlled all your monetary assets. The ramifications could be detrimental for anyone whose views, morals, religion, or any other aspect clashes with the current government.

China has been testing its CBDC, the Digital Currency/Electronic Payment (DCEP), since 2019. The Bahamas launched theirs, the Sand Dollar, in October 2020, being the first country in the world to launch a fully-fledged CBDC. Nigeria followed suit with its eNaira in October 2021.

In March 2022, President Biden signed an Executive Order ensuring the responsible development of digital assets, directing the United States Department of Treasury, the Federal Reserve, and other relevant agencies to begin exploring the adoption of a U.S. CBDC.

Canada, the UK, Sweden, and Jamaica are all investigating the use of CBDCs, but none have introduced one to the general public yet.

The Temptation of CBDC 

CBDC promises evolution in the traditional financial landscape with a streamlined and effective monetary framework. It offers a digital revamp to reduce transaction latency and costs with quicker cross-border transactions.

By bridging the digital divide, CBDC could pave the way for greater financial inclusion, welcoming unbanked populations into formal economic systems. But the sparkle of progression might distract from the lurking threats of privacy invasion and a dominant governmental eye on individual financial activities.

Proponents of CBDC also argue that a system under real-time federal oversight can curb illicit activities like money laundering, tax evasion, and terrorist financing. By enhancing transparency and combating crime, they believe this can foster public trust. But that is already being done by private banks.

Privacy, Surveillance, and Governmental Control

While CBDC presents the allure of convenience and modernization, it potentially opens the door for escalated surveillance and governmental control over individual financial autonomy.

  1. Privacy Concerns

The significance of privacy is often taken for granted until it’s threatened. CBDC, by its design, entails a level of transaction traceability that could infringe on individual privacy. Each transaction could be recorded and accessed by governing bodies, crafting a detailed economic blueprint of an individual’s life. Unlike certain cryptocurrencies that uphold anonymity, CBDC lacks this privacy-centric ethos, exposing individuals’ financial activities to scrutiny and potential data leaks.

  1. Surveillance Risks

Beyond privacy erosion, CBDC ushers in the potential for intensified surveillance. The digital trail left by CBDC transactions could be a goldmine for surveillance efforts, both by state and non-state actors, and the potential misuse of financial data could disrupt the delicate balance between individual freedom and state control.

  1. Governmental Control and Interference

The centralized nature of CBDC could amplify governmental control over financial transactions. Authorities might be able to block or delay transactions, censor economic activities, and even freeze assets, all under the guise of regulatory oversight.

This triad of privacy, surveillance, and governmental control concerns surrounding CBDC unveils a complex list of implications. The attraction of advancement by this digital financial metamorphosis is tempting, but the trade-offs between convenience and the principles of privacy and financial autonomy could have profound impacts on individual freedoms and the societal framework.

Thomas Jefferson once warned about the dangers of private banks controlling currency issuance, stating, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property…” He believed that the government should control currency, not private banks. Yet, considering today’s evolving governmental desire to control its populace in various ways, including CBDC, he might have opposed it as well, fearing the potential overreach and loss of financial autonomy.


The emergence of Central Bank Digital Currencies could bring a significant shift in the economic sector, promising a pathway to modernization and efficiency. The idea of streamlined transactions, reduced operational costs, and the potential for broader financial inclusion is very attractive.

However, the core concerns surrounding CBDC — privacy erosion, enhanced surveillance, and increased governmental control — pose significant challenges. The convenience CBDC offers might come at the expense of individual privacy and financial autonomy. This level of control and scrutiny is dangerous for the financial privacy individuals currently enjoy, opening doors to potential misuse and manipulation of financial data.

As the global narrative around CBDCs gains momentum and moves closer to the potential adoption of CBDCs, the discourse on these critical concerns needs to be robust and well-informed. The decisions made in the near future will significantly impact the financial environment, and its implications must be thoroughly considered.


Rebelling Against The Rebels

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