A CBDC Dollar Would Empower the Fed, Not Americans – WSJ

A growing number of Democratic and Republican policy makers support creating a central bank digital currency, or CBDC, that would further empower the Federal Reserve. Although the parties disagree on the particulars, their broad agreement on the idea creates a political opening for the Fed and the Biden administration to move ahead with a CBDC that will compromise Americans freedom.

Some lawmakers say a CBDC, which is a digital dollar issued by the Fed, could help stave off a debt crisis and preserve the dollar s status as the world s reserve currency. But it isn t clear that a CBDC will do either. It is clear that one could be used to monitor and manage the use of the dollar.

Not everyone is persuaded that such a currency is a good idea. Neel Kashkari, president of the Minneapolis Federal Reserve, questioned why Americans would support a CBDC. If they want to monitor every one of your transactions . . . you can do that with a central bank digital currency, Mr. Kashkari said at a conference last year. I get why China would be interested. Why would the American people be for that?

Early Democratic support was concentrated among progressives such as Sen. Elizabeth Warren (D., Mass.) and Fed Vice Chair Lael Brainard. But the sweeping scope of President Biden s CBDC executive order in March signals broad acceptance within his party. By mobilizing government agencies and departments to prepare for a CBDC, Mr. Biden made clear that his administration is ready to take up this newfound power when the opportunity presents itself.

via www.wsj.com

CBDCs are a really horrible idea.