The Launch of CBDC May Destroy Bitcoin – Arthur Hayes

Arthur Hayes, one of the industry’s well-known trading and crypto veteran who doubles as the Co-founder of the BitMEX exchange, has given his view on what he thinks will happen to Bitcoin if the majority of Central Bank Digital Currencies (CBDCs) is eventually launched.

According to a press releaseHayes called the CBDC “pure Evil” Hayes’ view is based upon the idea that the CBDC will give the government total control over amending legislation related to many subjects, such as Bitcoin. 

He said that CBDCs directly violate the rights of individuals to manage fair trades and self-governance. He stated that CBDCs would have a negative impact on banks’ ability and capacity to do business.

He stated that he believed the government would be able quickly to replace him. fiat currency The indifference of the populace makes CBDC difficult to use, creating a nightmare situation of financial surveillance. He did however hint that domestic and commercial banks could act as accomplices to stop the government from creating the best CBDC architecture possible for suffocating people.

Hayes stated that CBDC is being used by the government to combat economic inflation. He claims that this could harm the general population and the blockchain industry. He claims that the inflation soon to be felt will be significantly higher than the 50-year average. Therefore, he hopes that CBDC will prove successful.

CBDC’s dominance as an instrument of trade

A CBDC is a type of legally recognized digital currency, also known as “digital cash”. It is fundamental currency, just as real money, and a liability to the central bank. 

Many countries have started to test the use of CBDC for making payments for goods or services. Canada’s government has already begun to consult on the use of CBDC. Chrystia, the Deputy Prime Minister of Canada, released a statement last week that focused on digital currencies and assets worldwide.

It was also reported that the Central Bank of the United Arab Emirates’ (CBUAE), wholesale CBDC Pilot Program has now been completed.

Source: Shutterstock



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