Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Bloomberg’s Pro-CBDC Push Takes Heat for Ignoring Crypto

Bloomberg’s Pro-CBDC Push Takes Heat for Ignoring Crypto

DailyCoinDailyCoin2024/10/15 19:45
By:DailyCoin
  • A Bloomberg op-ed praises CBDCs.
  • Nic Carter questions Bloomberg’s motives.
  • Central banks continue to push CBDCs.

Central Bank Digital Currencies (CBDCs) are sold on their potential to improve financial inclusion, security, and cross-border settlement times. Yet, they face widespread skepticism due to surveillance, censorship, and government control concerns.

A recent Bloomberg op-ed pitched CBDCs as the key to solving cross-border payment issues, praising efforts by the BIS and IMF to build an interoperable CBDC network. But Nic Carter, co-founder of Castle Island Ventures, sharply criticized the piece, calling it “the weirdest/most tone-deaf op-ed of all time.”

Bloomberg: CBDCs Smooth Cross-Border Frictions 

The authors of a Bloomberg opinion piece argued that an interoperable CBDC network could streamline and reduce the cost of cross-border payments. However, Carter pointed out that the private sector, through stablecoins and private cryptocurrencies, has already solved these issues. 

Sponsored

Carter’s main critique focused on the article overlooking the proven role of stablecoins and private crypto in facilitating cross-border transactions. Instead, it promoted a hypothetical CBDC system that isn’t yet operational. 

He stressed that while policymakers struggle with inefficiencies like KYC and outdated correspondence systems, private companies have already cracked the case .

Considering this, Carter suggested that Bloomberg’s editorial board may harbor an anti-crypto bias despite some well-meaning contributors on the team.

Central Banks Intensify Efforts

Despite ongoing controversies surrounding CBDCs, including concerns about surveillance and government overreach, most central banks worldwide continue to push forward. 

A recent Reuters report noted that 134 countries, representing 98% of the global economy, are exploring CBDCs. Of these, more than half are in advanced stages, with 44 countries currently in their respective pilot phases.

While some CBDC pilots have struggled, such as Nigeria’s program, where 0.8% of the population has an active eNaira wallet, the Atlantic Council’s Josh Lipsky reports a shift in sentiment.

“There has been a narrative that the countries that have launched CBDCs have seen low or no usage, but in the last months, we have seen a real uptake,” stated Lipsky.

However, resistance remains, with figures like US Senator Ted Cruz introducing legislation earlier this year to ban direct-to-consumer CBDCs over concerns they could be used as surveillance tools.

On the Flipside

  • The debate between CBDCs and private cryptocurrencies reflects an ideological divide over centralized vs. decentralized systems.
  • The Bloomberg article categorized CBDCs as “crypto“.
  • Ecuador and Senegal have canceled their respective programs.

Why This Matters

CBDCs face significant public skepticism, especially in light of recent government overreach during crises, such as freezing protesters’ bank accounts during the 2022 Canadian truckers’ demonstration against COVID mandates.

Learn more about Ripple’s CBDC platform.
Ripple CBDC: How CBDCs Are Ripple’s Best Chance of Mass Adoption

BlackRock CEO is unfazed by US election outcome.
BlackRock’s Fink: Crypto Wins Regardless of Election Result

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!