Will a US Digital Dollar Protect Privacy?
What's going on guys. It is tuesday june fifteenth. And today we're talking about a us digital dollar and specifically whether a future digital dollar will preserve privacy center bank digital currencies. Have been one of the key undercurrent of this show for basically as long as i've been doing it as i've said before and i'll say again. Ultimately the breakdown is about shifts in power particularly economic power. The question of central bank digital currencies is absolutely one of power and that question runs on a few dimensions. There is the question of the power balance between states. The best example of this is china whose digital yuan efforts are at least in part an attempt to extend the sphere of influence of their native currency to internationalize the r&b and claim a larger status as a global settlement currency and world reserve asset. Smaller nations are likely to as well looked to digital currencies chess piece and reimagining where they sit importantly this won't always lead them to their own native digital fiat's as we've seen in the case of el salvador there may be compelling reasons to instead look to a non-sovereign non-aligned independent money as well. But there's also a key question of the balance of power within states specifically between state and non-state actors is having the ability to create currencies in the first place. This is a power historically monopolized by the state however private actors sometimes companies more often now. Decentralized networks are taking on that role in an increasingly significant way. It was after all facebook's ill-fated entrance into the cbd's space with its libra announcement that acted like a global starting gun for every government to take seriously the future of their currency as digital and of the global powers. No one took that threat more seriously than china and it wasn't just facebook that they were concerned.