The US think tank Bitcoin Policy Institute in its latest report titled “Why the US should Reject Central Bank Digital Currencies,” suggested that the US should accept Bitcoin or other stablecoins and ban the CBDC (Central Bank Digital Currency). The report highlighted the difference between US and China to support its ban on CBDC, stating that “CBDCs will eliminate the difference between authoritarianism and America.”

The report highlighted the Chinese century by stating:

“As the world goes the way of China in the 21^st century, the United States should stand for something unique and different: it should stand for freedom. For this reason, the US should reject CBDCs.”

The report further indicated that the rising number of nations joining the bandwagon to adopt their own CBDCs merely suggests the hegemony of the governments over legacy finance.

Natalie Smolenski and Dan Held, the whitepaper authors, argued that CBDCs could endanger the public’s financial freedom. Usage of CBDCs will give the government direct access to every transaction across the globe, which will take away the privacy and control of the public. The authors further argued that with the CBDCs government will be able to disincentivize or reverse the transaction, making them tools of financial control and censorship.

Smolenski discussed the opportunity cost of the digital currency and highlighted that digital currency like Bitcoin and other stablecoins will allow low-cost instant, and all digital transactions both within and across the boundaries since they will be subject to anti-money laundering and KYC (Known Your Customer) compliances

The authors ended the report with an emphasis that the US should stand alone and not centralize the power in the system but instead choose the path of privacy and freedom.