Officials Lambast CBDCs At Oslo Freedom Forum Conference

At the recent Oslo Freedom Forum conference, concerns about Central Bank Digital Currencies (CBDCs) were prominent. Participants, including activists, government officials, and citizens, expressed worry about governments leveraging CBDCs to control opposition movements, particularly in authoritarian regimes like Russia and Nicaragua.

The Dark Side Of CBDCs

The experiences of figures like Carlos Chamorro, Jimmy Lai, and Alexei Navalny illustrate the aforementioned fear. Chamorro faced asset seizures and statelessness in Nicaragua for criticizing the government. Lai in Hong Kong is currently facing life imprisonment for similar reasons, with the government freezing assets to silence dissent. Navalny in Russia, before his death, experienced asset seizures and arrests due to his anti-government activism.

The rollout of CBDCs in countries like Nigeria and China further underscores concerns. Government inefficiencies in implementation, such as the clunky Nigerian CBDC app, raise doubts about their capabilities. However, there is a darker side, as governments might resort to force to compensate for these shortcomings, as seen in the orchestrated cash shortage within Nigeria.

Potential Misuse

Warnings made by Liu Xiaobo about communist control over the income of Chinese citizens is another example of potential abuse. If governments control income and currency, dissent becomes nearly impossible. This sentiment was echoed at the Oslo Freedom Forum, where participants stressed the heightened difficulty of activism in a world where governments have total control over the finances of their citizens.

At their core, CBDCs are digital forms of sovereign currency issued by central banks. They operate on blockchain or digital ledger technology and are considered legal tender, providing a digital alternative to physical cash. Governments around the world are mainly backing CBDCs in an effort to curb the growing popularity and mainstream usage of cryptocurrencies.

Nevertheless, the forum emphasized the importance of raising awareness about CBDC risks. Many are unaware of the implications, making education a crucial step in mobilizing against potential abuses of CBDCs.