CBDC Debate: Freedom vs. Control, Experts Weigh In

• Many criticize the Ripple CTO for his CBDC advocacy, arguing that CBDCs are against individual freedom.
• David Schwartz claims that he hasn’t forced anyone into believing in CBDCs.
• The discussion began with the legal challenges the X platform faced in Brazil.

Ripple CTO David Schwartz faced backlash on X for his support of CBDCs, igniting a debate on free speech and the role of central bank digital currencies.

CBDC critics argue that these digital currencies go against the concept of freedom. Schwartz countered, asserting that he had not forced anyone to adopt CBDCs and emphasized individual choice.

The discussion initially stemmed from the controversial news of Brazilian Supreme Federal Court Minister Alexandre de Moraes’s threat against X’s legal representative in Brazil. X’s Global Government Affairs team revealed that the platform is shutting down its operations in Brazil due to Moraes’s threat to arrest the representative if the platform did not comply with the government’s censorship orders.

Elon Musk responded with an X post emphasizing the value of free speech in America and urging his followers to protect it.

Soon, the discussion got caught up on the topic of CBDCs and freedom; with Schwartz’s participation. While Schwartz posed a critical question of the government’s role in an individual’s freedom of expression, crypto and blockchain enthusiast Jim Pickrell slammed the former’s stance on CBDCs as against the idea of freedom. In addition, Pickrell reflected on Schwartz’s previous services in the National Security Agency (NSA), further strengthening his arguments.

Schwartz, however, countered that everyone has the freedom to choose, and no one is being forced into anything. He clarified that he hasn’t compelled anyone to believe in or adopt CBDCs; he’s simply highlighting their potential benefits. He further stated, “If you don’t like CBDCs, don’t use them.”

Central banks’ invention of CBDCs remains a hot debate, with many supporting and opposing the entity. While Schwartz is one of the key proponents of CBDCs, experts like Edward Snowden, who is also a former NSA employee like Schwartz, share a contrasting view. Snowden has shared his discontent with CBDCs addressing the currency as a “perversion of cryptocurrency.”