Edward Snowden criticized CBDC

American journalist Naomi Brockwell interviewed Edward Snowden. Among other information, he expressed his opinion about cryptocurrencies

According to him, the growth of digital currencies is inevitable, and it is good that many states have realized this. By launching the CBDC, Central Banks are trying to create effective competitors for bitcoin. However, CBDCs devalue the core values ​​of digital money.

Basically, national currencies are renamed fiat money. For the general public, they have no particular advantage. With their help, it will be more convenient for the government to make incentive payments. But there are obvious disadvantages.

“This is a new way of taxing, as these incentive payments devalue the currency. In this case, digital currency does not solve the problem of inflation and hidden taxes. ”

As for bitcoin, despite all the advantages, the problem of confidentiality and low bandwidth of the blockchain has not yet been resolved. In the form in which the BTC network functions, it is impossible to provide 100% confidentiality, which is necessary for large-scale transactions at the state level.

 

Snowden also admitted that he uses cryptocurrency, preferring digital money to a traditional payment instrument such as a credit card. Despite their obvious drawbacks, cryptocurrencies have many advantages over credit cards, which lack privacy.

“Everyone knows that cryptocurrencies have well-studied disadvantages. Completely solvable. When it comes to cross-network transactions, there are many teams working on this. The question is, why is it taking so long? "