CBDCs: A Digital Evolution of Money Amid Privacy and Security Concerns

As central banks explore the adoption of CBDCs, concerns about privacy, security, and the impact on civil liberties rise.

Central Bank Digital Currencies (CBDCs) are a digital form of a nation's fiat currency, issued and regulated by its central bank, aiming to modernize existing monetary systems and enhance transactional efficiency.
CBDCs are designed to integrate with existing financial and banking systems, allowing for easy transactions and exchanges with traditional money. They are programmable, trackable, and aim to be universally accessible.
However, CBDCs raise concerns about privacy and security due to their centralized nature. They could enable governments to monitor and track financial transactions more closely.
The Human Rights Foundation launched a CBDC tracker, charting the development and implementation of CBDCs worldwide. The tracker focuses on the impact of CBDCs on civil liberties and human rights, especially in authoritarian regimes.
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated that CBDCs could replace cash and improve cross-border payments. However, she emphasized the need to speed up the adoption of CBDCs.