Published:

11 oct 2021 14:19 GMT

In the view of the former CIA and US National Security Agency contractor, central bank digital currencies are “crypto-fascist.”

Edward Snowden has called central bank digital currencies, known by its acronym CBDC, “the newest danger on the public horizon,” as they are designed “explicitly to deny their users basic ownership of your money and install the state in the center mediator of each transaction“.

In an article published last Saturday, the former contractor for the CIA and the US National Security Agency (NSA) argued that digital currencies are “crypto-fascist” and “something closer to being. a perversion of the cryptocurrency“for lacking the decentralized nature of bitcoin, ethereum and other similar cryptocurrencies, which do guarantee the equal protection of all users without endowing States with special privileges.

CBDCs “are not, as Wikipedia could tell you, digital dollars,” Snowden said, recalling that “most dollars are already digital and do not exist as something folded in your wallet, but as an entry in the database. from a bank, requested and faithfully reproduced on your phone screen. ” He also rejected that CBDCs were a government version of cryptocurrencies “as they are currently understood by almost everyone who uses them.”

The very notion of crypto technology implies the need to “correct centralization that now threatens it “, regardless of who owns cryptocurrencies and for what purposes they use them. But as” for traditional banks, not to mention states with sovereign currencies, this is unacceptable“They try to promote traditional financial services to control and profit from each transaction, arguing that in the absence of such intermediation the market will be filled with crime, Snowden wrote.

“However, it is difficult to accept this statement when according to none other than the Office of Terrorism and Financial Crimes Financing of the US Department of the Treasury, ‘although virtual currencies are used for illicit transactions, the volume is small compared to the volume of illicit activity through traditional financial services, ‘”he added.

In Snowden’s view, today the utility of the banking industry “has withered, especially compared to cryptocurrencies.” “In short, in an increasingly digital society, there is almost nothing a bank can do to provide access and protect its assets that an algorithm cannot replicate and improve,” he concluded.

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