{"id":19641,"date":"2023-04-09T09:18:12","date_gmt":"2023-04-09T09:18:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cbdc-the-single-largest-assault-to-financial-privacy-since-creation-of-bank-secrecy-act-featured-bitcoin-news\/"},"modified":"2023-04-09T09:18:12","modified_gmt":"2023-04-09T09:18:12","slug":"cbdc-the-single-largest-assault-to-financial-privacy-since-creation-of-bank-secrecy-act-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cbdc-the-single-largest-assault-to-financial-privacy-since-creation-of-bank-secrecy-act-featured-bitcoin-news\/","title":{"rendered":"CBDC the ‘Single Largest Assault to Financial Privacy Since Creation of Bank Secrecy Act’ \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A central bank digital currency (CBDC) may turn out to be the \u201csingle largest assault to financial privacy since the creation of the Bank Secrecy Act,\u201d a policy analysis document released by CATO Institute has said. To stop the U.S. Federal Reserve and Treasury from threatening the financial system with the CBDC, the document said the U.S. Congress \u201cshould explicitly prohibit\u201d its issuance.<\/strong><\/p>\n

CBDCs a Threat to Financial Privacy<\/h2>\n

A policy analysis document released on April 4 by the CATO Institute warns that a central bank digital currency could be detrimental to the American people. To support this assertion, the analysis document points to the two-thirds of the 2,052 comment letters sent to the U.S. Federal Reserve that oppose plans to launch a CBDC.<\/p>\n

Authored by Nicholas Anthony and Norbert Michel, the policy analysis document also lists some of the concerns about CBDCs that have been raised and how the associated risks make the CBDC unsuitable for Americans. As seen in the document<\/a>, one key concern raised by CBDC opponents is the threat this poses to Americans\u2019 right to financial privacy.<\/p>\n

\u201cLaws designed to counter-terrorism, deter money laundering, and collect taxes largely provide the government with the ability to conduct unchecked surveillance over financial information. Nonetheless, a CBDC could spell doom for what little protection remains because it would give the federal government complete visibility into every financial transaction by establishing a direct link between the government and each citizen\u2019s financial activity,\u201d the analysis document stated.<\/p>\n

While attaining this feat is something the U.S. government may want to do, the authors assert that the issuance of the CBDC would amount to what they call the \u201csingle largest assault to financial privacy since the creation of the Bank Secrecy Act and the establishment of the third-party doctrine.\u201d<\/p>\n

US Congressional Intervention Sought<\/h2>\n

Besides being a threat to citizens\u2019 right to privacy as guaranteed by the U.S. constitution, Anthony and Michel claimed that a CBDC is likely to be a threat to financial freedom as well. They said:<\/p>\n

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A CBDC would provide countless opportunities for the government to control citizens\u2019 financial transactions. Such control could be preemptive (prohibiting and limiting purchases), behavioural (spurring and curbing purchases), or punitive (freezing and seizing funds).<\/p>\n<\/blockquote>\n

The policy document also suggested that a CBDC will pose a threat to free markets and will give cybercriminals \u201ca prominent platform on which to focus their efforts.\u201d<\/p>\n

To prevent the U.S. Federal Reserve from creating these risks, the two authors recommend that the U.S. Congress \u201cshould explicitly prohibit\u201d the U.S. Treasury and central bank from issuing digital currency in any form. This can be done by amending Section 13 of the Federal Reserve Act and by limiting the U.S. \u201cTreasury\u2019s authority to expand existing offerings.\u201d<\/p>\n

The authors also recommend that the U.S. Congress must \u201crequire that the Fed\u2019s compliance with the Depository Institutions Deregulation and Monetary Control Act\u2019s cost recovery provisions be subject to regular audits by third parties.\u201d<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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