Originally published June 29, 2023 6:00 pm PDT
The Atlantic Council, an eminent think tank, released a comprehensive study on Wednesday revealing that 130 nations, which make up 98% of the global GDP, are contemplating the introduction of central bank digital currencies (CBDCs).
Almost half of these countries are in the later stages of development.
The shift towards digital currency has accelerated since May 2020 when only 35 countries were considering it.
CBDCs represent a digitalized version of a country’s fiat currency, issued electronically by central banks instead of the traditional method of printing cash, The Blaze notes.
This revolutionary system has drawn criticism due to the profound power it could place in the hands of government officials, as they would possess the ability to halt transactions and even restrict citizens’ access to their own digital wallets.
Furthermore, the system would make all transactions traceable, raising privacy concerns.
According to the Atlantic Council study, “A new high of 64 countries are in an advanced phase of exploration (development, pilot, or launch).”
The list of nations that have taken the plunge into digital currency is growing, with the Bahamas, Jamaica, Saint Lucia, Grenada, and Nigeria already having launched their own versions.
The study further reports that 21 countries, including notable economies like Sweden, Singapore, Ukraine, Turkey, Iran, and South Africa, are currently piloting a CBDC system.
For Russia, Thailand, and Australia, their pilot programs are set to continue into 2023, while India and Brazil have slated their launches for 2024.
China’s pilot digital currency already boasts an impressive user base, with about 260 million individuals using it for varied purposes such as public transit, stimulus payments, and e-commerce purchases.
In terms of development, 32 countries, including the United States, Canada, Mexico, the United Kingdom, Brazil, and Norway, are reportedly making progress.
The Biden administration, represented by the likes of Treasury Secretary Janet Yellen, has shown a keen interest in the concept, The Blaze points out.
Yellen noted, “I think it [the digital dollar] could result in faster, safer, and cheaper payments, which I think are important goals.” The study also highlights that the Federal Reserve Banks are “pursuing CBDC prototypes for both wholesale and retail applications.”
Despite this, the U.S.’s retail CBDC has “stalled,” while the wholesale version, intended for bank-to-bank transactions, is “moving forward.”
The study also indicates a healthy interest in research, with 45 countries probing the prospects of adopting a digital currency.
A staggering statistic from the report states that “19 of the G20 countries are now in the advanced stage of CBDC development,” leaving out only Argentina.
This development points to substantial progress and resource investment in digital currency projects by these nations in the last half year.
However, not all nations are as enthusiastic about the switch to digital currency.
Senegal and Ecuador have chosen to reverse their course, canceling their digital currency development projects.
Renowned Rich Dad Poor Dad author, Robert Kiyosaki, has voiced his concerns about CBDCs, saying, “The major apprehension with FedCoin, the CBDC, is that it erodes our privacy. By tracking every financial transaction, they will have access to every detail of our spending, the recipient of our money, and how we allocate our resources. In essence, it replicates George Orwell’s dystopian society depicted in 1984.”
“Big Brother will be constantly monitoring our financial activity, and this is precisely the problem with central bank digital currency, or the Fed Coin,” he added.
Robert F. Kennedy Jr. (D), a 2024 U.S. presidential contender, echoed the sentiment.
“The Fed just announced it will introduce its ‘FedNow’ Central Bank Digital Currency (CBDC) in July. CBDCs grease the slippery slope to financial slavery and political tyranny,” he said.
“While cash transactions are anonymous, a #CBDC will allow the government to surveil all our private financial affairs,” he went on to say. “The central bank will have the power to enforce dollar limits on our transactions restricting where you can send money, where you can spend it, and when money expires.”
“A CBDC tied to digital ID and social credit score will allow the government to freeze your assets or limit your spending to approved vendors if you fail to comply with arbitrary diktats, i.e. vaccine mandates,” Kennedy continued.
