A government-backed crypto currency would come with a wallet. The central bank becomes both the issuer of money as well as host your account. This makes other banks largely obsolete.
Assuming it to be the main and only currency, transaction privacy fully ends. Transaction blocking and censorship would be the push of a button, pretty much your entire digital existence and access to things can be wiped out at will. Given that the majority of the world lives in an authoritarian regime, not at all a far-fetched scenario.
Money would also be programmable. The central bank can apply its monetary policy directly to your wallet. Stimulus money. Interest rates based on your behavior. The blocking of purchasing particular categories of products. Anything, really.
Algorithmic enforcement of social norms to confer an ideology of the state. I recall a historical tiff between Jefferson and Hamilton on the powers of the central bank a few years ago. Unfortunately CBDC is how a majority of humans will transact in 2030, history has demonstrated this. What we have up our sleeve is specific codified internet protocols that allow state-less money. Really, this point is still lost on most people, in that they have the ability to transact over the internet with no trusted third party. Blows my mind every day.
A government-backed crypto currency would come with a wallet. The central bank becomes both the issuer of money as well as host your account. This makes other banks largely obsolete.
Assuming it to be the main and only currency, transaction privacy fully ends. Transaction blocking and censorship would be the push of a button, pretty much your entire digital existence and access to things can be wiped out at will. Given that the majority of the world lives in an authoritarian regime, not at all a far-fetched scenario.
Money would also be programmable. The central bank can apply its monetary policy directly to your wallet. Stimulus money. Interest rates based on your behavior. The blocking of purchasing particular categories of products. Anything, really.