Private Financial Sector Report Criticizes CBDCs

A report released this week by Team Blockdata outlines significant developments in Central Bank Digital Currencies (CBDCs) and notably illustrates criticism of CBDCs by various stakeholders in the private financial sector. The American Banking Association (ABA), for example, reportedly believes that the issuance of digital currencies should be left to the private sector and that a CBDC issued by the United States Federal Reserve lacks "compelling use cases" and would rewire the banking system. The head of policy for stablecoin issuer Circle Internet Financial is quoted in the report as calling CBDCs a "preposterous idea." According to the report, other concerns about CBDCs from private stakeholders relate to anonymity and privacy, interoperability, scalability, technological structure, and balance between design and central bank policies.