Carlos Fernandes According to Balaji Srinivasan, the former technology chief at Coinbase, the control exerted by central banks over money does not align with the principles of democracy. Srinivasan expressed his concerns about this issue while commenting on statements made by the head of the Bank of International Settlements during an IMF meeting that focused on cross-border payments.
Srinivasan spoke out against the centralized control of money through central bank digital currencies (CBDCs). He took to Twitter to express his viewpoint, stating that it is undemocratic when the head of the Bank of International Settlements claims that central banks will have absolute control over all uses of money.
The discussion took place during a virtual meeting where policymakers, including the Managing Director of the International Monetary Fund, discussed the future of cross-border payments in light of new technologies and the emergence of digital currencies. Agustín Carstens, the General Manager of the Bank of International Settlements, emphasized that CBDCs would grant central banks complete control over the rules, regulations, and technology governing the use of these currencies.
Srinivasan further elaborated that this level of centralized control by unelected bureaucrats represents a shift towards communism, as it grants total control over all resources. His comments sparked a lively discussion on Twitter regarding this topic.
Coinciding with Srinivasan’s remarks, the Bank of International Settlements released a survey on CBDCs and crypto assets. The survey revealed that in 2022, 93% of the 86 surveyed central banks were involved in CBDC-related work, with over half of them already conducting tests and pilots.
What are your thoughts on whether central banks will have complete control over the use of money through CBDCs? Feel free to share your opinions in the comments section below.
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Frequently Asked Questions (FAQs) about central bank control
What is Balaji Srinivasan’s stance on central banks’ control over money?
Balaji Srinivasan believes that if central banks have complete control over all uses of money, it goes against the principles of democracy. He argues that this level of centralized control by unelected bureaucrats is undemocratic and resembles communism.
What did Agustín Carstens, the General Manager of the Bank of International Settlements, say about central bank digital currencies (CBDCs)?
Agustín Carstens stated during an IMF meeting that with CBDCs, central banks would have absolute control over the rules, regulations, and technology governing the use of money. This includes enforcing the guidelines and determining the expression of central bank liability.
How did Balaji Srinivasan’s comments spark a discussion?
Balaji Srinivasan’s comments on Twitter regarding the control of money by central banks through CBDCs generated a lively discussion. Many users joined in to express their thoughts on the topic, engaging in a back-and-forth conversation about the implications of centralized control and the principles of democracy.
What does the BIS survey reveal about central bank digital currencies (CBDCs)?
The BIS survey indicates that a significant number of central banks worldwide are actively involved in CBDC-related work. In 2022, 93% of the surveyed central banks were engaged in such initiatives, with over half of them already conducting tests and pilots. This suggests a growing interest in exploring and implementing CBDCs among monetary authorities.
More about central bank control
- Coinbase
- Bank of International Settlements
- International Monetary Fund
- Balaji Srinivasan on Twitter
- BIS survey on CBDCs and crypto assets
5 comments
wow balaji srinivasan knows whats up with central banks! no democracy if they control all the money! good point bro #freedom
Agustín Carstens’ statements about CBDCs and absolute control got me thinking. Balaji Srinivasan’s argument makes sense. We need to ensure democracy and freedom in our financial systems! #CentralBankDebate
This article is eye-opening! Balaji Srinivasan raises valid concerns about centralized control of money. We should be wary of giving unelected bureaucrats too much power. #StayVigilant
CBDCs giving central banks all the power? That’s not right! Balaji Srinivasan is onto something here, man. Let’s fight for democracy! #NoToControl
Central banks with total control over money? That’s a slippery slope to communism. Balaji Srinivasan is right to question it. Let’s have an open discussion on the future of money! #DemocracyMatters