- CBDCs would allow the government to have direct control over financial transactions made by citizens.
- CBDCs could be used to gather sensitive data on spending habits and personal preferences.
Concerns have been expressed concerning the potential use of CBDCs for snooping on US individuals as the US government continues to examine the possible introduction of a Central Bank Digital Currency (CBDC). According to Congressman Jim Banks, a CBDC may be “easily weaponized” to spy on US residents and jeopardize their financial privacy.
In a recent interview with a leading news channel, Congressman Banks explained that CBDCs would allow the government to have direct control over all financial transactions made by US citizens, which could be used to gather sensitive data on their spending habits and personal preferences. He also worried that CBDCs might be used to follow people and keep track of their actions, severely endangering their civil liberties and privacy.
Congressman Banks believes that in light of recent developments in artificial intelligence (AI) and data analytics, the potential for CBDCs to be exploited for surveillance is particularly problematic. He stated that by using these technologies to examine the vast volumes of data amassed through CBDC transactions, the government could spot trends and correlations indicating private information about certain people.
Advanced AI and data analytics: A threat to financial privacy
The potential for CBDCs to be used for surveillance has been debated among policymakers and experts for some time. While some contend that CBDCs could increase financial stability and inclusiveness, others are worried about the possibility of abuse.
In response to these worries, the Federal Reserve has declared that it is approaching the implementation of the CBDC cautiously and carefully weighing the advantages and disadvantages. Congressman Banks, however, has demanded more openness and public participation in the CBDC implementation procedure, contending that this is crucial to ensuring that the technology is not used to violate residents’ rights to privacy.
Balancing benefits with risks
The debate over CBDCs and surveillance is likely to continue as the US government continues to explore the potential implementation of this new technology. While there is no denying that CBDCs could offer several advantages, such as increased financial inclusion and security, it is also obvious that, if not handled appropriately, they could be exploited for spying and other sinister purposes.
To ensure that the technology is used to safeguard citizens’ civil liberties and privacy rights, governments will need to weigh the potential advantages of CBDCs against any potential concerns.
Source: https://www.thecoinrepublic.com/2023/03/13/cbdcs-could-be-used-for-spying-on-the-us-congressman-banks/