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Bitcoin (BTC) holders looking to evade Central Bank Digital Currencies (CBDC) may have found an unlikely ally in banks.
In his latest blog post, “personification of evilArthur Hayes, former CEO of crypto derivatives platform BitMEX, has argued that banks could limit the impact of CBDC horror stories.
CBDCs are currently in various stages of development around the world.
Proponents of financial sovereignty naturally fear and even despise governments because they mean that they have complete control over everyone’s money and purchasing power.
But CBDC opponents are not just Bitcoin enthusiasts. Sharing the cause is likely the commercial banks they are trying to oust from power with BTC.
I believe that majority indifference will allow governments to easily take our physical cash and replace it with CBDC, resulting in a utopia (or dystopia) of financial oversight. The blog post explains.
“But we have an unlikely ally that I believe will hinder the government’s ability to implement the most effective CBDC architecture to control the general public. And that ally is the domestic commercial banks. .”
In implementing a CBDC, governments can either make the central bank the sole node of the digital network, or use commercial banks as nodes for a less radical overhaul of the financial system. Hayes calls these systems the Direct Model and the Wholesale Model, respectively.
Given that at least all countries that have reached the choose the CBDC model stage have opted for the wholesale model, it is clear that no central bank wants to bankrupt domestic commercial banks, he reasoned. says.
So, while “appeasing” the banks to some extent, in order to achieve benefits such as eradicating cash, the government will eventually limit crypto exchange transactions and ban Hodler’s accounts, a class of entities known to may be suppressed by
For politicians who value power over profit, this is an opportunity to completely destroy the influence of the too-big-to-fail banks, but they remain politically unable to do so, Hayes added. .
The topic of CBDC has received widespread attention beyond the cryptocurrency industry as it will bring about major changes in both money and politics.
RELATED: CBDC is not a threat to cryptocurrencies Binance CEO
In an interview with Cointelegraph last week, development economist and De Montfort University professor Richard Warner described them as a declaration of war.
“In other words, banking regulators are suddenly saying that we are now trying to compete with banks because they have no chance. We cannot compete with regulators,” he said.
Meanwhile, Hayes flagged bitcoin as a safe haven available to those already opposed to all forms of zero-cash economy, but it didn’t last long.
Once CBDC is implemented, buying BTC will become increasingly difficult or perhaps completely impossible.
This window is not going to last forever. If capital controls are put in place, all money is digitized and certain transactions are no longer allowed, the ability to buy bitcoin will quickly disappear, he said. warned.
“If any of this doom porn resonates with you and you don’t own at least a small percentage of your liquidity net worth in Bitcoin, the best day to buy Bitcoin was yesterday.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
